Expenditure arising from the expiry of an employment or trade relationship

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 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 paid in several tax periods, 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 appropriate, in the regulations governing the execution of sentences, without being able to be considered as such the one established by virtue of an agreement, pact or contract. However, in the case of collective dismissals carried out in accordance with the provisions of article 51 of the Workers' Statute, or caused by the reasons provided for in letter c) of article 52 of the aforementioned Statute, provided that, in both cases, they are due to economic, technical, organizational, production reasons or force majeure, the amount established as mandatory in the aforementioned Statute for unfair dismissal will be the amount.

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

Filling in form 200

In application of the provisions of this precept, the taxpayer must make, in the tax period in which these expenses considered non-deductible are recorded, a positive adjustment to the accounting result in box [01817] "Expenses arising from the termination of the employment or commercial relationship (art. 15 i) LIS)" on page 12 of form 200.