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An employee of Correos on incentivised voluntary leave has enquired whether the company's payment of their MUFACE contributions affects their Income Tax. The Directorate General for Taxes (DGT) has ruled that such payment constitutes neither income nor a deductible expense for the worker.
No impact on the employee's tax liability, as the payment is not considered taxable income or a deductible expense.
The tax team reviews your specific situation.
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