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A worker inquired whether the €1,025 per child benefit established in the Albacete Provincial Council collective agreement is exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is not exempt, as it does not constitute a public aid measure but rather a remuneration for a specific group of workers.
This ruling clarifies that benefits derived from collective bargaining agreements, even if intended for family support, are treated as employment income and are subject to taxation, unlike official public social benefits.
The tax team reviews your specific situation.
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