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A query was raised regarding whether civil liability compensation following a judicial settlement for personal injury is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that if the amount is judicially recognised and pertains to physical, psychological, or moral damages, it is not taxable.
Cuestión planteada Tributación en el IRPF de la indemnización percibida.
Las indemnizaciones por responsabilidad civil por daños personales están exentas siempre que su cuantía sea legal o judicialmente reconocida. Se considera cuantía judicialmente reconocida la fijada por un juez o las fórmulas intermedias con intervención judicial, como los acuerdos aprobados por el juez. La exención aplica a daños físicos, psíquicos o morales, pero el exceso sobre la cuantía reconocida estará sujeto al impuesto.
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