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An insured person inquired whether a €36,000 payout received for professional disability through a collective life insurance policy was tax-exempt. The Directorate General for Taxes (DGT) ruled that the personal injury exemption does not apply, as the policy is not an accident insurance contract.
This ruling clarifies that payouts from collective life insurance policies for disability do not qualify for the personal injury tax exemption, meaning they are treated as employment income for tax purposes.
The tax team reviews your specific situation.
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