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V0888-25 ·23 May 2025 ·consulta-vinculante Low impact
Tax

Pay compensation for lost wages is treated as income from work

A consultant asks whether compensation of €24,940.95 for economic damages (unpaid wages) following a court judgment is exempt from income tax. The DGT responds that, as it is not compensation for personal injuries but for material damages, it constitutes income from work.

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2025-05-23PublishedPublished 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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