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A person with a disability enquired about the applicable Income Tax (IRPF) withholding rate for their retirement pension. The Directorate General for Tax (DGT) has ruled that if the pension is not exempt due to absolute permanent disability or severe invalidity, the general withholding rules for employment income apply.
This clarification confirms that disability status does not automatically grant tax exemptions; unless specific legal criteria for exemption are met, pensions are treated as standard employment income for withholding purposes.
The tax team reviews your specific situation.
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