4.2.34 Key 01817 expenses arising from the termination of the employment or commercial relationship (Art. 15 i) LIS)

Article 15 i) of the LIS establishes that expenses arising from the termination of the employment relationship, common or special, or the commercial relationship referred to in article 17.2.e) of Law 35/2006, of November 28, on Personal Income Tax and the partial modification of the laws on Corporate Tax, Non-Resident Income Tax and Wealth Tax, or both, will not be tax deductible, even if they are incurred in several tax periods, and which exceed, for each recipient, the highest of the following amounts:

• 1 million euros.

• The amount established as mandatory in the Workers' Statute, in its implementing regulations or, where applicable, in the regulations governing the execution of judgments, without being considered as such the amount established by virtue of an agreement, pact or contract. However, in cases of collective lay-offs carried out in accordance with the terms of Article 51 of the Workers' Statute, or arising out of the causes provided for in paragraph c) of Article 52 of the Statute, provided that, in both cases, they are due to economic, technical, organisational or production reasons or due to force majeure, it will be the amount established with an obligatory nature in the Statute for unlawful dismissal.

For these purposes, the amounts paid by other entities that form part of the same group of companies in which the circumstances provided for in article 42 of the Commercial Code occur will be computed, regardless of their residence and the obligation to prepare consolidated annual accounts.

In application of the provisions of this provision, the taxpayer must make a positive adjustment to the accounting result in this key in the tax period in which these expenses considered non-deductible are recorded.