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A taxpayer inquired whether payments made for a compensatory pension in 2019 could be deducted from their Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that amounts paid under a settlement agreement are not deductible until the judicial sentence becomes final.
Taxpayers must ensure that divorce proceedings have reached a final, non-appealable stage before attempting to claim tax deductions for compensatory pensions.
The tax team reviews your specific situation.
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