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A bank has requested clarification regarding the taxation of a sum paid to the widow and daughters of a deceased employee. The Directorate General for Taxes (DGT) has ruled that these benefits constitute employment income and qualify for a 30% reduction if declared within a single tax year.
This ruling clarifies the tax treatment for death benefits, confirming they are classified as employment income and allowing beneficiaries to benefit from the reduction applicable to irregular income, provided the amount is reported in one tax period.
The tax team reviews your specific situation.
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