Skip to content
Back to index
V0087-16 14 January 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo en especie

Premiums for collective life and accident insurance treated as benefits in kind

A company has requested clarification on whether premiums for a collective life and accident insurance policy for its staff must be taxed. The Directorate General for Taxes (DGT) has ruled that, as the policy does not exclusively cover occupational accidents, the premium constitutes employment income in kind.

The question raised

Tax imputation of the premium. In particular:

The DGT's ruling

The premium of a collective insurance policy covering death, severe disability, or incapacity is not considered exempt income in kind as it pertains to a work-related accident. Since it is a risk insurance contract, the tax imputation of the premium as employment income is mandatory, regardless of its amount.

Book your free first meeting