In accordance with Art. 9 of the Law on income tax on individuals (consolidated text. Laws of 2000 No. 14, item. 176, as amended. Amended.) Are subject to income tax all types of income, other than income referred to in Art. 21, 52, 52a and 52c and the income on which under the provisions of the Tax Code was abandoned tax collection. The present provision establishes the principle of universality of taxation of personal income tax. Taxable income so any kind except for income and revenue set mainly in art. 21 of the Act. The legislature, for various reasons found that certain income or income received by the taxpayer are free from income tax. Specified in Art. 21 list of exemptions in question is an exception to the principle of fair taxation, and therefore the interpretation of the legislation establishing these exemptions must be interpreted strictly. Product exemptions from the scope over the 21 years of the Income Tax Act from individuals undergo constant changes and modifications. Since the beginning of the act of the directory in question were placed exemption provisions for exemptions from income tax of compensation. Currently list of exemptions related to compensation is governed by Art. Paragraph 21. 1 point 3, 3a, 3b, 3c, 3d, 4, 106 and section 120 The present release are also subject to the specific type of benefit to the specific nature of compensation. They were mentioned in Art. Paragraph 21. 1 points 45, 52, 53.
Compensation is a benefit enjoyed by an entity who has suffered prejudice (loss), either in your wealth (economic loss), or for other goods (non-pecuniary damage). Individuals may be entitled to compensation for the damage suffered due to a series of laws (such as the Environmental Protection Law, the Law on Real Estate, Civil Code, the Labour Code, the Code of Administrative Procedure, etc.).
The provisions of the Income Tax Act from individuals introduce the general rule that compensation is exempt from tax, provided, however, that in some cases, compensation will not be subject to the exemption from tax and the individual will be required to settle the tax office for the resulting damages . Mainly applies to payments received in connection with their business activities. The reason for which the legislature has introduced the principle of compensation exemption from income tax is the fact that compensation is designed to compensate the victim suffered injury, not the enrichment resulting revenue from which, in principle, should be charged tax.
