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A query was raised regarding whether the compensation received by the heirs of a construction sector worker following death from a common illness is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it does not constitute exempt income.
The ruling clarifies that compensation arising from collective agreements for non-occupational illnesses is subject to taxation, unlike certain accident insurance payouts.
The tax team reviews your specific situation.
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