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A doctor enquired whether judicial compensation for being unable to perform continuous care shifts was exempt or eligible for a tax reduction. The DGT ruled that it is taxed as employment income and must be attributed to the tax year in which the judgment becomes final.
Question raised: Taxation of compensation in Personal Income Tax (IRPF). Temporal imputation of additional compensation in judgment enforcement proceedings.
Damages in lieu of unpaid remuneration are classified as income from employment. They are not exempt as they do not constitute personal injury, nor do they qualify for the reduction for irregularity. The amounts are imputed to the tax period in which the judicial ruling determining the right or its amount becomes final.
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