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A German national resident in Spain since 2014 seeks advice on the taxation of a dismissal payment received in January 2014 following a termination in 2013. The DGT rules that the indemnity must be attributed to 2013, the year it became due, not the year of payment.
The indemnity is taxable in the year it becomes due, not the year it is received, affecting tax reporting and obligations for individuals with foreign residency.
The tax team reviews your specific situation.
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