Skip to content
Back to index
V0250-23 14 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización

Compensation for untaken rest periods is not exempt from Personal Income Tax (IRPF)

A driver inquired whether compensation received for being unable to take statutory rest periods is exempt under civil liability. The DGT ruled that this does not constitute an exemption for personal injury, but rather qualifies as employment income.

The question raised

Taxation of the compensation in Personal Income Tax. Application of the exemption provided for in Article 7.d) of the Personal Income Tax Law.

The DGT's ruling

Compensation for unused rest hours does not constitute an exemption for civil liability for personal injury under Article 7.d) of Law 35/2006. As it does not repair personal injury but rather an economic loss, the amount must be taxed as employment income pursuant to Article 17.1 of the Personal Income Tax Law.

Book your free first meeting