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V1857-18 25 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · seguro de accidentes

Compensation from a collective accident insurance policy may be exempt depending on the damage assessment system

The consultant asks whether the 200,000 euro compensation from a collective accident insurance policy for permanent disability is exempt or if a 30% reduction may apply. The DGT responds that the exemption depends on whether the accident occurred before or after 2016 and on the amount according to the damage assessment system, and that the excess will be taxed as employment income without entitlement to the 30% reduction.

The question raised

Question raised: Whether the exemption of Article 7.d) of the LIRPF is applicable to the amount received from the insurance, and in the event that said amount were subject to taxation, whether the 30% reduction established in Article 12 of the RIRPF may be applied.

The DGT's ruling

Compensation from accident insurance is exempt in the amount resulting from the application of the system for the assessment of damages and losses (depending on the date of the accident). If the amount exceeds said amount, the excess is considered employment income pursuant to Article 17.2.a) 5th of the LIRPF. Such employment income is not entitled to the 30% reduction provided for in Article 18.2.a) of the LIRPF. In renewable term insurance, the transitional regime of the eleventh transitional provision of the LIRPF does not apply.

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