News

Compensation without tax

Art. 21 sec. Section 1 (3b) of the Personal Income Tax Act applies to compensation for compensation for actual loss and not for the benefit that the taxpayer would have had had he been harmed. According to the NSA's verdict of February 1, 2017. According to the NSA in the subject matter, which concerned a taxpayer who entered into a contract with the developer to build a garage apartment, we are dealing with compensation under Art. 21 sec. 1 pt 3b of the PIT Act. According to the court, compensation for non-recovery of premises at the price resulting from an unrealized contract is an equalization of the damage to the taxpayer's property, thus compensating for the actual loss suffered by him, as opposed to (hypothetical) compensation for lost rent for rent. Legally qualified compensation for lost benefits. And the NSA considered that there is a compensation that compensates for the actual loss, rather than the benefit that the taxpayer would have had if the damage had not been done to him. In conclusion, the compensation received by the taxpayer of the NSA qualified as compensating for the actual loss and not the lost benefit and considered that it is covered by the tax exemption referred to in Article. 21 sec. 1 pt 3b of the PIT Act.

 Top of page