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Tax & Legal

Tax & Legal

Additional severance payment for earlier termination of employment also tax-privileged


The mutual termination of an employment is normally (also) in the interest of the employer. A severance payment made in return is therefore generally tax privileged. The Lower (regional) Tax Court of Hesse decided that this also applies in the event of an additional payment because of the (premature) termination of the employment relationship prior to the date as originally set in the termination agreement. Continue reading