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Consultants inquired about the taxation of outstanding amounts from an employment termination agreement following the death of an employee. The DGT ruled that, as these amounts are received by the heirs, they constitute a succession right subject to Inheritance and Gift Tax.
This ruling clarifies that payments resulting from the termination of an employment relationship due to death are treated as inherited assets rather than employment income for the beneficiaries.
The tax team reviews your specific situation.
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