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V3113-21 ·14 December 2021 ·consulta-vinculante Medium impact
Tax

Pension plan benefits upon death are taxed as employment income under Personal Income Tax

A query was raised regarding which tax applies to pension plan benefits following the death of a participant and when they should be taxed. The Directorate General for Taxes (DGT) clarifies that they are subject to Personal Income Tax (IRPF) and that the tax liability arises when the benefit becomes due.

In 6 key points

How it affects those involved

This clarification confirms the tax treatment and timing for beneficiaries of pension plans, ensuring consistency with employment income regulations.

Lifecycle

2021-12-14PublishedPublished 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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