Compensation for personal injuries arising from accident insurance contracts

Compensation for personal injury arising from accident insurance contracts is also exempt, except for those whose premiums could have reduced the tax base or been considered as a deductible expense in determining the net income of the economic activity carried out by the insured.

The exemption only extends to the amount resulting from applying, to the damage suffered, the system for the assessment of damages and injuries caused to persons in a traffic accident, distinguishing:

• Accidents that occur on or after 1 January 2016, to which the assessment system included in the new Title IV and the new Annex of the Revised Text of the Law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of 29 October, will be applied, which is introduced by the sole article of Law 35/2015, of 22 September, regarding the reform of the system for the assessment of damages and injuries caused to persons in traffic accidents ( BOE of the 23rd).

  Please note that the updated compensation amounts for 2019 are published on the website http://www.dgsfp.mineco.es

• Accidents that occurred before 1 January 2016, to which the system set out in the Annex of the Revised Text of the Law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of 29 October, in its version in force until 31 December 2015, will be applied.

Note: The compensatory interest for late payment corresponding to an exempt compensation is also exempt in accordance with the provisions of article 7 of the Tax Law. The reason is that the fixed interest, as an accessory obligation, must be considered in the same way as the main concept from which it is derived and classified, in these cases, as exempt capital gains. See in this regard the Resolution of the Central Economic-Administrative Court ( TEAC ), dated May 10, 2018, in unification of criteria.