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V3537-20 ·10 December 2020 ·consulta-vinculante Medium impact
Tax

Compensation for non-pecuniary damages received from a Public Administration is exempt from Personal Income Tax (IRPF)

A query was raised regarding whether a €12,000 compensation for non-pecuniary damages, settled through a termination agreement in a state liability procedure with a local council, is subject to Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) ruled that such an amount is exempt.

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2020-12-10PublishedPublished 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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