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V0250-23 ·14 February 2023 ·consulta-vinculante Medium impact
Tax

Compensation for untaken rest periods is not exempt from Personal Income Tax (IRPF)

A driver inquired whether compensation received for being unable to take statutory rest periods is exempt under civil liability. The DGT ruled that this does not constitute an exemption for personal injury, but rather qualifies as employment income.

In 6 key points

How it affects those involved

This ruling clarifies that payments received in lieu of rest periods are treated as taxable employment income rather than non-taxable compensation for damages.

Lifecycle

2023-02-14PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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