3.1.2. Income exempt from article 7 of the Law
As established in article 7 of the Tax Law, the following income is exempt:
Aid and compensation
- Extraordinary public benefits for acts of terrorism and pensions derived from medals and decorations awarded for acts of terrorism. In particular, compensation and financial aid received under Law 32/1999, of October 8, on Solidarity with victims of terrorism, are exempt.
- Aid of any kind received by those affected by the Human Immunodeficiency Virus, regulated in Royal Decree-Law 9/1993, of May 28.
- Compensation as a consequence of civil liability for personal injury, in the legal or judicially recognized amount.
Among others, compensation paid for accidents caused up to December 31, 2015 is considered compensation in the legally recognized amount, in accordance with the provisions of article 1.2 of the Law on Civil Liability and Insurance in the circulation of vehicles through motor, approved by Royal Legislative Decree 8/2004, of October 29, 2004, as long as they are paid by an insurance entity as a consequence of the civil liability of the insured, for accidents caused after January 1, 2016, the valuation system will be applied The valuation system included in the new title IV and the new annex that has replaced the previous one of the Consolidated Text of the Law on Civil Liability and Insurance in the circulation of motor vehicles will be applied, both introduced by the single article of Law 35 /2015 of September 22, reform of the system for the assessment of damages caused to people in traffic accidents.
- Compensation for personal injuries derived from accident insurance contracts, except for those whose premiums could have reduced the tax base or been considered a deductible expense from the income from professional activities by application of the provisions of article 30.2.1 of the Tax Law. .
The exemption extends up to the amount resulting from applying, to the damage suffered, the system for assessing damages and losses caused to people in traffic accidents, incorporated as an annex to the Law on Civil Liability and Insurance in the Circulation of Vehicles. Engine.
- Compensation for dismissal or dismissal of the worker, in the amount established on a mandatory basis in the Workers' Statute, in its implementing regulations or, where applicable, in the regulations governing the execution of sentences, without it being considered as such. that established by virtue of an agreement, pact or contract.
When the employment contract is terminated prior to the conciliation act, compensation for dismissal that does not exceed that which would have corresponded in the event that it had been declared inadmissible will be exempt, and these are not terminations by mutual agreement in the framework of collective incentive plans or systems. Having to differentiate in 2012 the layoffs that occurred until July 7 of said year and those that originate from said date:
- In layoffs that occur between January 1, 2012 and July 7, 2012, dismissal compensation will be exempt when the employer recognizes it at the time of communication of the dismissal, and as long as the compensation does not exceed the amount that would have corresponded to him in the event that this had been declared inadmissible.
- For dismissals that occur after July 7, 2012, only compensation recognized in a conciliation act or in a judicial resolution will be exempt.
Without prejudice to the provisions of the previous paragraphs, in the cases of dismissal or termination resulting from employment regulation files, processed in accordance with the provisions of article 51 of the Workers' Statute and prior approval of the competent authority, or produced for the causes provided for in letter c) of article 52 of the aforementioned Statute, provided that, in both cases, they are due to economic, technical, organizational, production or force majeure causes, the part of compensation received that does not exceed will be exempt. the limits established on a mandatory basis in the aforementioned Statute for unfair dismissal, that is, 33 days per year of service up to a maximum of 24 monthly payments.
The exemption for dismissal or dismissal of the worker will have a limit of 180,000 euros which is applicable:
- To layoffs that occur since August 1, 2014.
- To dismissals derived from ERE or collective dismissals when the ERE has been approved or the collective dismissal has begun before August 1, 2014.
NOTE: This last section will apply to dismissals resulting from employment regulation files approved as of the entry into force of Royal Decree-Law 2/2009, of March 6 , as well as well as dismissals caused by the causes provided for in letter c) of article 52 of the Workers' Statute from this same date. The aforementioned Royal Decree-Law came into force on March 8, 2009. Compensations in process or valid for application on February 12, 2012 will be exempt in the amount that does not exceed 45 days of salary per year of service, with periods of time less than one year being prorated by month up to a maximum of 42 monthly payments. .
The enjoyment of this exemption is conditional on the worker's actual separation from the company. It will be presumed, unless proven otherwise, that said separation does not occur when in the three years following the dismissal or termination the worker returns to provide services to the same company or to another company linked to it in the terms provided for in article 16 of the text. consolidated version of the Corporate Tax Law, provided that in the case in which the relationship is defined based on the partner-company relationship, the participation is equal to or greater than 25 percent, or 5 percent if it involves securities. traded on regulated securities markets defined in Title III of Directive 2004/39/EC.
Compensations paid by Public Administrations for personal injuries as a consequence of the operation of public services, when established in accordance with the procedures provided for in Royal Decree 429/1993, of March 26, which approves the Regulation of procedures of public administrations in matters of patrimonial responsibility.
- The financial aid regulated in article 2 of Law 14/2002, which includes social aid to people with hemophilia or other congenital coagulopathies, who have developed hepatitis C as a result of having received treatment with coagulation factor concentrates in the area. of the public health system. (Law 14/2002).
- The income derived from the application of hedging instruments will be exempt when they exclusively cover the risk of increase in the variable interest rate of mortgage loans intended for the acquisition of the taxpayer's habitual residence, regulated in article nineteenth of Law 36/ 2003.
- The compensation provided for in the legislation of the State and the Autonomous Communities to compensate for the deprivation of liberty in penitentiary establishments as a result of the cases contemplated in Law 46/1977, of October 15, on Amnesty.
- The aid received by the people who recorded, in the Personal Income Tax returns for the years 1999 to 2005, the compensation provided for in the legislation of the State and the Autonomous Communities to compensate for the deprivation of liberty will be exempt. in penitentiary establishments as a consequence of the cases contemplated in Law 46/1977, on Amnesty.
These aids are quantified at 15 percent of the amounts that, for this concept, would have been recorded in the Personal Income Tax declaration for each of said tax periods.
If the people who received the compensation and recorded it in the corresponding declaration had died, the right to aid and exemption will correspond to their heirs.
Pensions and social security benefits and similar
- The benefits recognized to the taxpayer by Social Security or by the entities that replace it as a consequence of absolute permanent disability or severe disability.
Likewise, the benefits recognized to professionals not integrated into the special Social Security regime of self-employed or self-employed workers by social security mutual societies that act as alternatives to the special Social Security regime mentioned, provided that they are benefits in situations identical to those provided for absolute permanent disability or major Social Security disability.
The exempt amount will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. The excess will be taxed as income from work, understood to be produced, in the event of concurrent benefits from Social Security and the aforementioned mutual societies, in the benefits of the latter.
- Pensions for uselessness or permanent disability of the passive class regime, provided that the injury or illness that had caused them completely disqualified the recipient of the pension from any profession or trade.
- Maternity or paternity benefits and non-contributory family benefits regulated, respectively, in Chapters VI and VII of Title II and in Chapter I of Title VI of the consolidated text of the General Social Security Law, approved by the Royal Legislative Decree 8/2015, of October 30 and pensions and passive assets for orphans and in favor of grandchildren and siblings, under twenty-two years of age or incapable of all work, received from the public Social Security regimes and passive classes.
Likewise, maternity or paternity benefits received from Social Security Mutual Funds that act as alternatives to the special Social Security regime for self-employed or self-employed workers are declared exempt, with the limit of the maximum benefit recognized by Social Security for the corresponding concept.
Remuneration received during leave for childbirth, adoption or guardianship and paternity will also be exempt, for public employees covered by a Social Security regime that does not give the right to receive maternity or paternity benefits, with the limit of the maximum benefit recognized. Social Security for the corresponding concept.
- Other public benefits for birth, childbirth or multiple adoption, adoption, maternity or paternity, dependent children and orphanhood will be exempt.
- Public financial benefits linked to the service, for care in the family environment and personalized assistance that derive from the Law for the promotion of personal autonomy and care for people in a situation of dependency.
The unemployment benefits recognized by the respective managing entity when they are received in the single payment modality established in Royal Decree 1044/1985, of June 19, which regulates the payment of the unemployment benefit in its payment modality single, provided that the amounts received are used for the purposes and in the cases provided for in the aforementioned standard.
This exemption will be conditional on maintaining the share or participation for a period of five years, in the event that the taxpayer has joined labor companies or associated labor cooperatives or has made a contribution to the share capital of a commercial entity, or to the maintenance, for the same period, of the activity, in the case of the self-employed worker.
- The pensions recognized in favor of those people who suffered injuries or mutilations on the occasion of or as a consequence of the civil war 1936/1939, either by the State Passive Classes regime or under the protection of the special legislation issued for this purpose.
- The benefits recognized to the taxpayer by Social Security or by the entities that replace it as a consequence of absolute permanent disability or severe disability.
Other public benefits
- The amounts received from public institutions for the fostering of minors, people with disabilities or people over sixty-five years of age, whether in the simple, permanent or pre-adoptive modality or the equivalent in the regulations of the Autonomous Communities, including foster care in the execution of the judicial measure of coexistence of the minor provided for in Organic Law 5/2000. Financial aid granted by public institutions to people with a degree of disability equal to or greater than 65 percent or over 65 years of age will also be exempt to finance their stay in residences or day centers, provided that the rest of their income does not exceed the double the IPREM (multiple-effect public income indicator) (for 2019 the annual amount of the IPREM has been established at 7,519.59 euros).
- Public scholarships and scholarships granted by non-profit entities to which the special regime regulated in title II of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, received to pursue regulated studies, both in Spain and abroad, at all levels and grades of the educational system. Likewise, public scholarships and those granted by the non-profit entities mentioned above for research in the field described by Royal Decree 63/2006, of January 27, which approves the Statute of research personnel in training, as well as those granted by them for research purposes to officials and other personnel at the service of public administrations and to teaching and research staff of universities.
Likewise, scholarships granted by banking foundations regulated in Title II of Law 26/2013 on savings banks and banking foundations in the development of their social work activity will be exempt, also to pursue Regulated and Research Studies.
- Training and technical aid of economic content, with a limit of 60,100 euros, to high-level athletes adjusted to the preparation programs established by the Higher Sports Council with the Spanish Sports Federations or with the Spanish Olympic Committee, which comply the following requirements (art. 4 Rgl):
- That its beneficiaries have recognized the status of high-level athletes, in accordance with the provisions of Royal Decree 1467/1997, of September 19, on high-level athletes.
- That are financed, directly or indirectly, by the Higher Sports Council, by the Olympic Sports Association, by the Spanish Olympic Committee or by the Spanish Paralympic Committee.
- The amounts paid by the Spanish State to members of international peace or humanitarian missions for the following reasons (art. 5 Rgl.):
- Extraordinary gratifications of any nature that respond to the performance of the international peace or humanitarian mission.
- Compensation or benefits paid for personal injuries suffered during the same.
- Family benefits and aid received from any of the Public Administrations, whether linked to the birth, adoption, fostering or care of minor children.
- The minimum insertion income established by the Autonomous Communities, as well as other aid established by them or by local entities to serve groups at risk of social exclusion, social emergency situations, housing needs of people without resources or needs for food, schooling and other basic needs of minors or people with disabilities when they or their dependents lack sufficient financial means, these aids will be exempt up to a maximum joint annual amount of 1.5 times the IPREM (7,519.59 euros for the year 2017 ).
- The aid granted to victims of violent crimes referred to in Law 35/1995 is also declared exempt, as well as the aid provided for in Organic Law 1/2004 on Comprehensive Protection Measures against Gender Violence, and other public aid granted. to victims of gender violence due to such condition.
- Aid granted pursuant to the provisions of Royal Decree 920/2014, of October 31, which regulates the direct granting of subsidies intended to compensate for the costs derived from the receipt or access to information, will also be exempt. television audiovisual communication services in buildings affected by the release of the digital dividend.
- The relevant literary, artistic, or scientific awards, with the conditions established by regulation, as well as the "Prince of Asturias" awards, in their different modalities, awarded by the Prince of Asturias Foundation.
- The annuities for maintenance received from the parents by virtue of a court decision.
- Work income received for work actually carried out abroad, with a maximum limit of 60,100 euros per year, and provided that the legally established requirements are met.
- The benefits received for burial or funeral, with the limit of the total amount of the expenses incurred.
- Positive returns on movable capital from the new Long-Term Savings Plans are declared exempt, provided that the taxpayer does not make any disposition of the capital resulting from the Plan before the end of the period of 5 years from its opening.
- The income from work derived from the benefits obtained in the form of income by people with disabilities corresponding to contributions to social security systems of article 53 of the Law, as well as the income from work derived from contributions to protected assets of the people with disabilities (DA 18 of the Law), up to a maximum annual amount for each of these returns of three times the public multiple-effect income indicator.