Whether the court pays taxes on compensation depends on what kind of compensation it is. If it is state compensation, the state compensation obtained by the parties concerned does not need to pay any tax according to the law, and accordingly it should be regarded as tax-free income in enterprise income tax. In civil compensation cases, the compensation for losses obtained by the parties in providing taxable services, transferring intangible assets or selling real estate shall be calculated and collected in accordance with the provisions of business tax, and the compensation for enterprise income tax shall be calculated and paid according to law. The compensation obtained by the lessor is essentially the rental income obtained by renting the facade. Therefore, the compensation obtained by the lessor should be taxed according to the "lease" item in the tax item of "service industry", and the judgment of the court does not affect whether to tax. For example, if the trademark right is infringed and the court decides to pay compensation, then it can be considered that the compensation is the income obtained from the transfer of the trademark use right, and the relevant turnover tax and income tax need to be paid. For example, if someone is beaten and the court decides to get compensation, then this income is not obtained by providing labor services or transferring goods, which does not meet the scope of taxation of turnover tax or personal income tax. The same court compensation, whether it is taxed or not, cannot be generalized. Look at the judgment to see if it meets the scope of taxation that does not meet a certain tax.

Legal analysis

Article 34 of the State Compensation Law of People's Republic of China (PRC) infringes on citizens' right to life and health, and the compensation shall be calculated according to the following provisions: (1) If physical injury is caused, medical expenses and nursing expenses shall be paid, and the income reduced due to absenteeism shall be compensated. The daily compensation for income reduction is calculated according to the average daily salary of employees in the previous year, and the maximum is five times the average annual salary of employees in the previous year; (2) If part or all of the working ability is lost, medical expenses, nursing expenses, living AIDS for the disabled, rehabilitation expenses, other necessary expenses due to disability and expenses necessary for continuing treatment shall be paid, and disability compensation shall be paid. Disability compensation is determined according to the degree of disability and the level of disability stipulated by the state, and the maximum is not more than 20 times of the average annual salary of employees in the previous year. If it causes complete loss of working ability, it shall also pay living expenses to the disabled person it supports; (3) If death is caused, death compensation and funeral expenses shall be paid, the total amount of which shall be 20 times of the average annual salary of employees in the previous year. Living expenses shall also be paid to those who were unable to work and were supported by the deceased before his death. The payment standard of living expenses stipulated in items (2) and (3) of the preceding paragraph shall be implemented with reference to the local minimum living standard. If the dependant is a minor, the living expenses shall be paid to the age of eighteen; Other people who are unable to work shall be paid living expenses until their death.