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V1833-15 ·10 June 2015 ·consulta-vinculante Medium impact
Tax

40% reduction in withholding tax applicable to lump-sum permanent disability payments

A taxpayer inquired whether a lump-sum payment received from a mutual insurance company due to partial permanent disability qualifies for the 40% reduction. The Directorate General for Taxes (DGT) ruled that this reduction is indeed applicable when determining the withholding tax base.

In 6 key points

How it affects those involved

This ruling confirms that lump-sum disability payments are treated as income that is notably irregular, allowing taxpayers to benefit from the 40% reduction on the withholding tax base.

Lifecycle

2015-06-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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