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A hospitality worker enquired whether permanent total disability compensation paid by her employer under a collective agreement was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is not exempt income, but it does allow for a reduction applicable to irregular income.
This clarification confirms that while disability compensation from an employer is subject to income tax, taxpayers can benefit from specific tax relief designed for irregular earnings.
The tax team reviews your specific situation.
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