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The taxpayer asks whether compensation for medical negligence and administrative liability for personal damage is exempt from income tax. The DGT confirms that compensation for personal damage is exempt.
Question raised: Whether the compensation received would be exempt from Personal Income Tax (IRPF).
Compensations paid by Public Administrations for personal injury resulting from the operation of public services are exempt. This exemption applies even if the procedure is governed by Law 39/2015 or Law 40/2015 instead of the previous Royal Decree 429/1993. The exemption covers physical, psychological, or moral damages provided they are established in accordance with the regulations on patrimonial liability.
What is published here, applied to a company or a specific case. The first meeting is free.
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