Personal injury compensation payments

What payments do not qualify for investment exemption?

You are not exempt from tax on the following payments:

  • compensation payments for minor injuries
  • compensation payment for an injury that caused a permanent incapacity, but does not prevent you from working in your job.

The payment amount you receive may differ depending on the extent of your incapacity. Payments may be greatly reduced if you were careless.

You may be involved in rehabilitative work in a sheltered workplace or workshop. This will not stop you from applying for tax exemption.

Next: What does the investment exemption cover?