The absence of taxation on amounts resulting from occupational accidents

Abstract

While the Constitution and the laws infra want to face the Income Tax does not envisage tax amounts related to labor claims, Decree No. 3000/99, in its art. 43 states that are subject to taxation rights to unused vacation and turned into money or compensation. Even though the tax authorities often consider as a basis for calculating the amounts resulting from the compensation, the courts have ruled unconstitutional such taxation because they are not active increases due to income or earnings of any nature, but rather a replacement, compensation of a loss or damage that the person had a right that for some reason was not able to enjoy. Thus, it is unconstitutional to consider the basis for calculating the amounts arising from workers' compensation.