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A professional soldier received compensation for leave due to insufficient psychophysical conditions and enquired whether this amount was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is not exempt, as it does not qualify under civil liability exemptions nor under those for total disability pensions.
This ruling clarifies that compensation for psychophysical incapacity in the Civil Servants Regime is subject to taxation, as it does not meet the specific legal criteria for tax exemptions related to civil liability or disability pensions.
The tax team reviews your specific situation.
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