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A civil servant retired due to permanent disability following a court ruling has enquired about regularising their tax status. The Directorate General of Taxes (DGT) has responded that if the administrative resolution declares incapacity for all professions or trades, the pension is exempt, and tax returns for the affected years may be rectified.
This ruling clarifies the procedure for civil servants to reclaim incorrectly paid Income Tax on pensions resulting from total permanent disability, provided the administrative resolution confirms incapacity for all professional activities.
The tax team reviews your specific situation.
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