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A worker enquired whether compensation received for a two-year non-compete agreement could be attributed to the tax periods covered by the agreement. The DGT ruled that such employment income must be attributed to the period in which it becomes due to the recipient.
This ruling clarifies the timing for tax reporting of non-compete payments, ensuring they are taxed in the year the right to receive them arises rather than the period the restriction covers.
The tax team reviews your specific situation.
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