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V3139-21 17 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización

Reimbursement of fees and interest due to professional indemnity claims taxed as capital gains

A taxpayer received a reimbursement from their professional indemnity insurance covering fees, penalties, and interest paid following an inspection caused by their advisor's malpractice. The Directorate General for Taxes (DGT) has ruled that this amount is not exempt income for personal injury, but rather a capital gain.

The question raised

Taxation in the Personal Income Tax (IRPF) of the reimbursed amounts.

The DGT's ruling

The reimbursement of amounts for civil liability does not constitute an exemption for personal injury compensation, as it responds to an economic or patrimonial loss. In the absence of coverage by another exemption, the amount must be classified as a capital gain pursuant to Article 33.1 of the Personal Income Tax Law. As it does not derive from a transfer, its quantification shall be the monetary amount of the compensation received.

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