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A query was raised regarding whether compensation for death caused by an occupational disease, agreed upon in a judicial conciliation act, is exempt from Income Tax (IRPF). The Directorate General of Taxes (DGT) confirms it is, provided the amount is legally or judicially recognised.
Question raised: Taxation under Personal Income Tax (IRPF).
For civil liability compensation to be exempt income under Personal Income Tax (IRPF), it must correspond to personal injury and its amount must be legally or judicially recognized. The judicially recognized amount includes that fixed by a judge or intermediate formulas with judicial intervention, such as a conciliation deed. In this case, the compensation for personal injury agreed through conciliation with the intervention of the Clerk of the Court meets the requirements for exemption.
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