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V0099-19 16 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos en especie

Grandchildren classified as descendants for health insurance premium exemption in Personal Income Tax

A query was raised regarding whether a worker's grandchildren fall under the definition of descendants for the purpose of exempting health insurance premiums. The Directorate General for Taxes (DGT) has ruled that they do, as the law does not impose age limits on descendants.

The question raised

Interpretation of Article 42.3 c) of the Personal Income Tax Law regarding whether the worker's grandchildren are considered included within the concept of descendants.

The DGT's ruling

Health insurance premiums paid by the company are exempt up to 500 euros annually per person (or 1,500 if they have a disability). The concept of descendants for this exemption includes children, grandchildren, or great-grandchildren of the worker, as no age limit is established in the regulations.

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