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V0043-18 16 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Increased deductible expenses for disability cannot be applied during early retirement

A consultant on early retirement with a disability inquired whether they could apply the reduction in deductible expenses for active workers with disabilities. The Directorate General for Taxes (DGT) ruled that this is not possible because early retirement does not meet the requirement of being an active worker.

The question raised

Consideration of the taxpayer's employment status regarding the calculation of withholdings, specifically whether it is possible for a person in a state of "early retirement" to be treated, for tax purposes, as an active worker.

The DGT's ruling

To apply the increase in deductible expenses for disability under Article 19.2.f) of the Personal Income Tax Law (LIRPF), it is necessary to be an active worker. An active worker is understood to be someone who receives income from the effective provision of remunerated services performed on behalf of another under the organization of an employer. Being in a state of early retirement, this requirement is not met and there is no entitlement to the increase in expenses.

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