Tax & Legal

The finance ministry has amended its redundancy payments decree to take account of minor amounts paid before or after the main payment.

The finance ministry has issued a circular on employee redundancy payments, dealing essentially with the question of income accumulation in a single tax year.

Germany and Britain have agreed to tax redundancy payments in the country of employment, unless the payment is expressly intended as provision for the future.

The finance ministry has agreed with Luxembourg that redundancy payments and unemployment benefit shall be taxed in the country of the (former) employment.

The Supreme Tax Court has held that the tax-free portion of a redundancy settlement should be deducted from the down-payment in determining the income accumulation entitlement to progressive rate spread.