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V0825-23 10 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización a tanto alzado

Lump-sum compensation for death due to workplace accident is taxable as employment income

A query was raised regarding whether the lump-sum compensation received by the widow of a person deceased due to a workplace accident is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that these benefits are taxable as employment income.

The question raised

Taxation of the lump-sum special compensation received by the widow of a deceased person who had recognized absolute incapacity derived from an occupational accident.

The DGT's ruling

Lump-sum special compensation for death due to occupational accident or professional disease is subject to Personal Income Tax (IRPF) as income from employment, pursuant to Article 17.2.a).1 of Law 35/2006. As these are death benefits obtained in a notoriously irregular manner, the 30 percent reduction may apply if they are attributed to a single tax period.

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