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A query was raised regarding whether a court-ordered compensation of 15,000 euros for a breach of fundamental rights is exempt from Income Tax (IRPF) under civil liability rules. The Directorate General of Taxes (DGT) ruled that it is not exempt, as the judgment pertains to material damage rather than personal injury.
This ruling clarifies that compensation for economic or material losses, even when arising from the violation of fundamental rights, does not qualify for the tax exemption reserved for personal injury compensation.
The tax team reviews your specific situation.
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