In a recent decision by the Spanish High Court, dated 8 March 2017, the court concluded that severances paid for dismissal or termination of senior executive employment relationships could be totally or partially exempt from taxation for personal income tax (“PIT”) purposes.
The labour market is still widely dominated by traditional forms of employment, although various economic crises, new market needs and international movement have led us to move away from the traditional notion of jobs for life.
When the main economic indicators – in particular the growth rate – show signs of recovery in the Portuguese economy after the recent financial crisis, the Portuguese tax and legal system present a set of attractive and sustainable solutions which place the Portuguese market as one of the most competitive in Europe for investors.
On 1 January 2017, article 348 bis of the Spanish Law on Corporations (“LOC”) came into force again. It had been in force for less than nine months (from October 2011 to June 2012) and then it was suspended until the aforementioned date. The article establishes the right of separation for shareholders in the event of a lack of distribution of dividends.
The recent episodes arising from the collapse of several national banks, in particular the latest scandal involving the Espírito Santo´s Group, led to the modification of sanctions in the Portuguese Securities Code.