New regulations for 2025

Main new features of Organic Law 1/2025, of January 2, on measures regarding the efficiency of the Public Justice Service

PERSONAL INCOME TAX

The Fourteenth Final Provision of Organic Law 1/2025, of January 2, on measures regarding the efficiency of the Public Justice Service , which enters into force on April 3, 2025, modifies various articles of Law 35/2006, of November 28, on Personal Income Tax .

- Exemption from compensation as a result of civil liability for personal injury

Firstly, the exemption for compensation as a result of civil liability for personal injury provided for in letter d) of article 7 of the Personal Income Tax Law is extended to include other compensation as a result of civil liability for physical or psychological damage , the amount of which has not been legally or judicially fixed, but as a result of a mediation agreement or any other appropriate means of legally providing for dispute resolution.

In addition, it is required that:

• The compensation is paid by the insurance company of the who caused the damage,
• a neutral third party has intervened in the agreement and this has been raised to public deed ,
• the exempt amount does not exceed the amount that would be set in accordance with the system for the assessment of damages and injuries caused to persons in traffic accidents, incorporated as an annex in the consolidated text of the Law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of October 29.

- Exemption for compensation for dismissal or termination of the worker

Secondly, letter e) of article 7 the Personal Income Tax Law is modified and the exemption from compensation for dismissal or termination of the worker agreed upon in the conciliation act before the administrative service as a previous step to the initiation of the social judicial process is expressly established

For purely clarification purposes, following the previous administrative and jurisprudential criteria, it is confirmed that they are not considered to be established by virtue of an agreement, pact or contract.

- Exemption for alimony payments received from parents under the regulatory agreement

Finally, letter k) of article 7 the Tax Law is reworded and the application of the exemption to the annual alimony received by children is expressly established when they are fixed by the regulatory agreement referred to in article 90 of the Civil Code or the equivalent agreement of the regulations of the Autonomous Communities, approved by the judicial authority or formalized before the attorney of the Administration of Justice, or in a public deed before a notary , regardless of whether or not said agreement derives from any adequate means of legally provided dispute resolution.

The modification of said letter k) also requires modifying the reference contained in the annual alimony payments in article 64 and in article 75 of the Tax Law.

de medidas en materia de eficiencia del Servicio Público de Justicia.(BOE, 03-enero-2025)