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V4131-15 22 December 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

Disability compensation from a group insurance policy is not exempt and is taxed as employment income

A worker received compensation for permanent professional disability from a group insurance policy taken out by her employer. The DGT has determined that this is not an accident insurance policy and that the benefit must be taxed as employment income without entitlement to reductions.

The question raised

Tax regime applicable to the amount received as a lump sum. Possible application of exemptions or reductions.

The DGT's ruling

The compensation is not exempt as it is not an accident insurance contract. By establishing pension commitments, the benefit is classified as employment income pursuant to Article 17.2.a) 5th of Law 35/2006. The transitional regime of the eleventh transitional provision does not apply because the annual renewal of the insurance constitutes a new contract. Finally, the 40% reduction provided for in Article 18.2 of Law 35/2006 is not applicable.

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