ARE ACCIDENT BENEFITS TAXED?
Taxation of indemnities derived from civil liability for personal injuries and traffic accidents.
The indemnities derived from civil liability for personal injuries in the amount that is legally appropriate or that is judicially agreed, being exempt from taxation in the tax on the income of natural persons.
Compensation arising from civil liability should not be declared as income.
These compensations must not be declared as an income attributable to income when they come from or have the consequence of the repair of damages that have been caused, but it is necessary that the amount received is what is legally provided in the scales or is established by a Judge through the corresponding judicial resolution, regardless of who finally pays the compensation, either the person directly responsible for the damage or his insurance company.
Indemnities for personal injuries derived from accident insurance contracts, also being exempt from personal income tax.
Personal damages are both physical and mental and moral damages.
With respect to the interest that is charged due to late payment and the payment of the corresponding compensation, it is considered that they are also exempt from taxation, unlike the situation that existed before the year 2018 in this regard.
From Adacc Advocats Accidents Catalunya we want to help you with any question or doubt you may have in relation to the production of a traffic accident or that has occurred in other different areas, such as in the workplace, maritime, air, domestic, school, etc. Do not hesitate to contact us. We do not charge anything to solve these doubts, because we share your concerns.