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Taxation of the severance payment in the case of a termination agreement

March 26, 2017 | 30,00 EUR | answered by

Dear tax advisor,

Attached is the description of the situation:

Currently, I am receiving a gross salary of 80,000 euros per year. Due to planned restructuring, a termination agreement with termination of the employment relationship on December 31, 2017 is now being offered. In January 2018, I will receive a severance payment of 90,000 euros gross.

Questions:

1. How is the severance payment (90,000 euros) taxed and how much is the net severance payment if one is not employed in 2018 and only receives unemployment benefits? Does the unemployment benefit affect the taxation of the severance payment?

2. How is the severance payment (90,000 euros) taxed and how much is the net severance payment if one is employed again in 2018 (employed work) and earns 80,000 euros gross?

3. How is the severance payment (90,000 euros) taxed and how much is the net severance payment if one has income from their own company (LLC, GmbH) in the amount of 40,000 euros gross in 2018?

Thank you for your support and best regards,