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V2909-19 22 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Payment of directors' and officers' liability insurance premiums may not constitute benefits in kind

A foundation requested clarification on whether paying premiums for directors' and officers' liability insurance constitutes a benefit in kind. The Directorate General for Taxes (DGT) ruled that, under the described conditions, no such benefit in kind exists.

The question raised

It is consulted whether the premium paid by virtue of the aforementioned civil liability insurance constitutes remuneration in kind.

The DGT's ruling

Under the hypothesis that premiums are paid undifferentiated and without individualized attribution to each insured person, it is not considered remuneration in kind. The insurance covers risks assumed in the performance of duties as directors, executives, or trustees. The assumption of services for private purposes provided for in Article 42 of the LIRPF is not met.

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