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V3270-19 ·27 November 2019 ·consulta-vinculante Medium impact
Tax

Compensation for material and non-material damages via out-of-court settlement is taxable as a capital gain

A query was raised regarding whether compensation for non-material and material damages agreed upon out of court is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is not exempt and must be taxed as a capital gain.

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2019-11-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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