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The taxpayer inquired whether the total amount of their permanent disability benefits (both total and absolute) is exempt from taxation. The Directorate General for Taxes (DGT) ruled that only the portion corresponding to absolute permanent disability is exempt; the portion relating to total permanent disability must be taxed as employment income.
This ruling clarifies the tax treatment of disability benefits, confirming that total permanent disability pensions are subject to Income Tax (IRPF), unlike absolute permanent disability or severe invalidity pensions.
The tax team reviews your specific situation.
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