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V0905-25 ·26 May 2025 ·consulta-vinculante Medium impact
Tax

Damages morale exempt in IRPF, but lost profits taxed as work income

A person receives a judicial indemnity for violation of their trade union freedom, including lost profits and moral damages. The DGT rules that only the moral damages portion is tax-exempt.

In 6 key points

How it affects those involved

Lost profits are considered taxable work income, while moral damages are exempt from IRPF.

Lifecycle

2025-05-26PublishedPublished 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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