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V5313-16 ·15 December 2016 ·consulta-vinculante Medium impact
Tax

Accident insurance disability compensation is exempt from Income Tax up to the legal valuation limit

A self-employed individual inquired whether compensation received for total permanent disability following a work accident is exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that while the exemption applies, it is limited to the amount resulting from the damage assessment system set out in the Law on Civil Liability and Insurance in the Circulation of Motor Vehicles.

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2016-12-15PublishedPublished 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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