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V0627-16 16 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Amounts received to pay civil liability insurance are taxed as income from economic activity

A technical architect receives the amount of twelve annual payments from a developer to cover their civil liability insurance premiums. The DGT has determined that this money must be taxed as income from their economic activity.

The question raised

Taxation under Personal Income Tax (IRPF) of the amount received for the payment of civil liability insurance premiums.

The DGT's ruling

The amounts received for the payment of civil liability insurance premiums are classified as income from economic activities. As the professional pays such premiums to the insurer, these shall be considered deductible expenses for the purpose of determining the net income of the activity in the corresponding tax period.

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