18. Compensation paid by public authorities for personal injuries

Regulations: Art. 7.q) Law Income Tax

Compensation paid by public administrations for personal injury resulting from 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, which regulates in its articles 65, 67, 81, 86.5, 91 and 92 the special features of the patrimonial liability procedure, as well as in Law 40/2015, of October 1, on the Legal Regime of the Public Sector, which specifically devotes its Chapter IV, articles 32 to 37, both inclusive, to regulating the regime of 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 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(BOE of October 2) and Law 40/2015, of October 1, on the Legal Regime of the Public Sector (BOE of October 2), repealed, with effect from October 2, 2016, Royal Decree 429/1993, of March 26.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.

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 the same 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 ), dated May 10, 2018, Claim number 00/05260/2017, issued in an extraordinary appeal for the unification of criteria.