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V0104-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income tax return mandatory if combined retirement and compensatory pensions exceed €14,000

A query was raised regarding whether an individual receiving a retirement pension of €9,569 and a compensatory pension of €5,100 must file an income tax return. The Directorate General of Taxes (DGT) ruled that, as both are classified as employment income, the total amount of €14,669 triggers the obligation to file.

The question raised

Whether a person who receives a contributory retirement pension in the annual amount of 9,569 euros, and a compensatory pension from a former spouse due to divorce in the annual amount of 5,100 euros, has the obligation to file an IRPF tax return.

The DGT's ruling

Retirement pensions and compensatory pensions are considered income from employment. The threshold for not being required to file a tax return decreases from 22,000 to 14,000 euros per annum when compensatory pensions from a spouse are received. Upon aggregating both concepts, if the total amount exceeds 14,000 euros, the taxpayer is obliged to file a tax return.

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