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V0998-16 ·14 March 2016 ·consulta-vinculante Medium impact
Tax

Severance pay for leave of absence is recognised in the period when each payment becomes due to the employee

A query was raised regarding when a Correos employee must pay tax on severance received when taking an incentivised voluntary leave of absence. The DGT ruled that the timing of recognition occurs in each tax period in which the payment becomes due according to the established schedule.

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2016-03-14PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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