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A query was raised regarding whether judicial compensation for non-pecuniary damages resulting from a breach of occupational risk prevention regulations is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as the compensation pertains to personal (non-pecuniary) damages and the amount has been judicially determined, the income is exempt.
This ruling clarifies the tax-exempt status of compensation for moral or non-pecuniary damages, providing legal certainty for individuals receiving such settlements.
The tax team reviews your specific situation.
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