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V2053-17 ·31 July 2017 ·consulta-vinculante Medium impact
Tax

Disability payouts from annually renewable group insurance are taxed as employment income

A worker inquired whether disability compensation from a group insurance policy could qualify for the transitional regime under DT 11ª. The Directorate General for Taxes (DGT) ruled that, as it is an annually renewable insurance policy, this regime does not apply and the benefit is taxed as employment income.

In 6 key points

How it affects those involved

This ruling clarifies that disability benefits from group insurance policies subject to annual renewal do not benefit from transitional tax regimes and must be treated as employment income for tax purposes.

Lifecycle

2017-07-31PublishedPublished 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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