The Court of Cassation, February 3, 2021, no. 2472 ruled that the non-pecuniary damage to professionalism must be traced back to the emerging damage and, as such, not concurrent with the formation of taxable employment income pursuant to art. 49, co. 1, TUIR.
The subjection of the sums to tax and social security contributions must be sought in the indications provided by art. 6, co. 2, TUIR, according to which: “The proceeds obtained in replacement of income, also as a result of the assignment of the related credits, and the indemnities obtained, also in insurance form, by way of compensation for damages consisting in the loss of income, excluding employees from permanent disability or death, constitute income in the same category as those replaced or lost. “.
In other words, the sums deriving from the so-called loss of profit must be subject to the tax regime of belonging to the replaced or lost income, otherwise, if the aforementioned sums are recognized as compensation by a so-called emerging damage, the same must be considered excluded from the application of the tax pursuant to art. 49 TUIR and, therefore, exempt from withholding taxes or contributions.
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