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A taxpayer inquired whether funds received from their Health Service to reimburse the costs of an orthoprosthetic brace for their daughter should be taxed under Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that such assistance does not constitute income as it does not demonstrate an increase in economic capacity.
This ruling clarifies that compensatory reimbursements for medical expenses do not increase a taxpayer's wealth and are therefore exempt from income tax.
The tax team reviews your specific situation.
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