Member of DGFP - Deutsche Gesellschaft für Personalführung e.V.
Tax issues (reference XI R 22/00)
The Federal Tax Court has ruled on the taxation of outplacement consulting.
At the time, severance pay up to €12,271 was tax-free. In the case being dealt with, the company had also paid for outplacement consulting. The question was whether this additional compensation should be treated as social relief and thus be tax-free. The Federal Tax Court ruled that it should, provided the outplacement fee is not paid to the candidate.
That means: if you agree on severance pay in the amount of €20,000, that amount will be taxed.
If you arrange for NewPlacement coaching and your employer pays us, your severance pay becomes tax-free.
This is clearly the best option.
Get in contact with us. Not only can we help you quickly find a new position; we can also save you tax.
