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V1835-17 ·12 July 2017 ·consulta-vinculante Medium impact
Tax

Compensation received for damages must be included in the Corporate Tax taxable base

A company enquired whether compensation received from a consultancy firm for accounting errors and incurred penalties should be subject to Corporate Tax. The DGT ruled that, as the income derives from a judicial settlement for damages, it must be included in the taxable base.

In 6 key points

How it affects those involved

Companies receiving compensation for damages or losses must ensure these amounts are correctly accounted for and included in their Corporate Tax taxable base.

Lifecycle

2017-07-12PublishedPublished 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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