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V2297-22 ·31 October 2022 ·consulta-vinculante Medium impact
Tax

Monthly payments agreed upon for a former employee and paid to heirs are subject to Inheritance Tax

A query was raised regarding whether monthly amounts a bank must pay to the heirs of a deceased former employee (under a redundancy agreement) should be taxed under Personal Income Tax (IRPF) or Inheritance Tax. The DGT ruled that the deceased is taxed under IRPF up until death, and the heirs must pay Inheritance Tax.

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2022-10-31PublishedPublished 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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