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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A worker inquired whether returning to work for a company that previously dismissed them, after receiving compensation, affects tax exemptions. The Directorate General of Taxes (DGT) explains that rehiring within three years creates a presumption that no genuine severance of the employment relationship occurred.
This ruling impacts employers and employees regarding the tax treatment of severance payments, as rapid rehiring may trigger tax liabilities previously avoided through exemptions.
The tax team reviews your specific situation.
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