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A query was raised regarding whether transforming a worker-owned company (sociedad laboral) into a limited company (sociedad limitada) within five years voids the exemption for unemployment benefits received as a lump sum. The Directorate General for Taxes (DGT) ruled that such a transformation does not breach the requirement to maintain the investment.
This ruling provides legal certainty for worker-owned companies undergoing structural changes, ensuring that the conversion to a limited company does not trigger the repayment of tax-exempt unemployment benefits.
The tax team reviews your specific situation.
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