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V0010-22 4 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction not applicable to permanent disability pensions received as an annuity

A taxpayer inquired whether the 30% reduction under Article 18 of the Personal Income Tax Act (LIRPF) could be applied to their total permanent disability pension. The Directorate General for Taxes (DGT) ruled that since the pension is received monthly as an annuity rather than as a lump sum, the reduction does not apply.

The question raised

Application of the 30 percent reduction under Article 18 of Law 35/2006.

The DGT's ruling

Social Security pensions are income from employment. Pursuant to Article 18.1 of Law 35/2006, the prescribed reductions shall not apply when the benefit is received in the form of an annuity. Since the permanent disability pension is received on a monthly basis, the reduction percentage is not applicable.

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