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A query was raised regarding whether a non-contributory disability pension and a third-party assistance allowance are exempt from Personal Income Tax (IRPF). The Tax Agency responded that the pension may be exempt if it pertains to absolute permanent incapacity or severe disability, whereas the third-party assistance allowance is taxed as employment income without exemption.
This clarification distinguishes between different types of disability benefits for tax purposes, confirming that only specific disability statuses grant tax exemptions, while assistance allowances remain taxable.
The tax team reviews your specific situation.
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