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V0212-24 27 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

Disability compensation from group insurance is taxed as employment income

A worker received a lump sum from a company group insurance policy due to absolute permanent disability. The DGT has ruled that this amount must be taxed as employment income rather than as income from movable capital.

The question raised

Whether the capital received is taxed as income from employment or as income from movable capital.

The DGT's ruling

Disability benefits received by beneficiaries of group insurance contracts that implement pension commitments are considered income from employment. According to the Personal Income Tax Law (LIRPF), this income must be included in the general tax base and is subject to withholding.

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