18. Compensation paid by Public Administrations for personal injuries

Regulations: Art. 7.q) Law Personal Income Tax

Compensations paid by Public Administrations for personal injuries as a consequence of the operation of public services are exempt, when they are established in accordance with the procedure provided for in Law 39/2015, of October 1, on the Common Administrative Procedure of Administrations. Public ( BOE of 2) that regulates in its articles 65, 67, 81, 86.5, 91 and 92 the specialties of the property liability procedure as in Law 40/2015, of 1 of October, of the Legal Regime of the Public Sector ( BOE of October 2) which, specifically, allocates its chapter IV, articles 32 to 37, both inclusive, to the regulation of the public sector regime. patrimonial liability of Public Administrations in terms of its principles, concurrent liability, scope of compensation, liability under Private Law, requirement of patrimonial liability of authorities and personnel at the service of Public Administrations and criminal liability.

Note: Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations (BOE of October 2) and Law 40/2015, of October 1, on the Legal Regime of the Public Sector (BOE of October 2) , repealed, with effect from October 2, 2016, Royal Decree 429/1993, of March 26. which approves the Regulation of procedures of public administrations in matters of financial liability ( BOE of May 4 and June 8).

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