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V3177-17 12 December 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Life insurance payout paid by a company is classified as employment income

An individual received a payment from their deceased spouse's company regarding a life insurance sum not specified in the policy. The DGT has ruled that this amount must be taxed as employment income.

The question raised

Classification in Personal Income Tax (IRPF) of the amount received.

The DGT's ruling

The amount received is taxed as income from employment as it derives directly or indirectly from personal work or an employment relationship. The fact that the income derives not from the taxpayer but from a third party does not prevent its classification as income from employment.

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