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V1420-19 ·13 June 2019 ·consulta-vinculante Medium impact
Tax

Compensation for failure to execute a judgment is taxed as a capital gain in Personal Income Tax

A query was raised regarding whether compensatory damages, paid due to the impossibility of executing a court order to demolish a structure, are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such compensation constitutes taxable income and must be taxed as a capital gain.

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2019-06-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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