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V2607-17 13 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Liability insurance premiums for directors do not constitute benefits in kind

The question arises as to whether the payment of liability insurance premiums for executives and directors constitutes a benefit in kind. The DGT rules that it does not, due to the specific characteristics of the policy.

The question raised

It is consulted whether the premiums paid by virtue of the aforementioned civil liability insurance constitute a benefit in kind for the present, past, and future members of the Board of Directors.

The DGT's ruling

There is no benefit in kind subject to Personal Income Tax (IRPF) because the premiums are paid in an undifferentiated manner, without individualized attribution for each insured person. The policy covers claims arising from management acts and the insured group is broad and without specific nomination.

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