18. Compensation paid by Public Administrations for personal injuries

Regulations: Art. 7.q) Law Income Tax

Compensation paid by Public Administrations for personal injuries as a result of the operation of public services is exempt when established in accordance with the procedure provided for in Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations ( BOE of 2) which regulates in its articles 65, 67, 81, 86.5, 91 and 92 the special features of the patrimonial liability procedure and in Law 40/2015, of October 1, on 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 patrimonial liability regime of Public Administrations in terms of its principles, concurrent liability, scope of compensation, liability of Private Law, requirement of patrimonial responsibility of authorities and personnel in 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(BOE of October 2) and Law 40/2015, of October 1, on the Legal Regime of the Public Sector (BOE of October 2), repealed, with effect from October 2, 2016, Royal Decree 429/1993, of March 26. approving the Regulations on the procedures of public administrations in matters of patrimonial responsibility ( BOE of May 4 and June 8).

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