How Are Ex Gratia Payments on Termination of Employment Now Taxed?
The recent amendment to the Income Tax Law (118(I)/2002) by Amending Law 244(I)/2025 introduces significant provisions regarding the taxation of ex gratia payments made upon termination of employment. This article sets out the current legal framework and the practical implications for employees and employers. 1. Definition and Legal Basis for Taxation The term “ex gratia […]
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