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V0123-20 21 January 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending money and consuming fungible goods for vital needs is not considered a disposal of assets

A query was raised regarding whether using money or fungible goods to meet the vital needs of a person with a disability constitutes a disposal of assets that would require the repayment of tax benefits. The Directorate General for Taxes (DGT) ruled that such expenses should not be considered acts of disposal for the purposes of maintaining protected contributions.

The question raised

Whether the concepts of detailed expenses incurred during the tax period of the contribution or in the following four years should not be understood as a disposal of assets for the purposes of the provisions of Article 54.5 of the LIRPF.

The DGT's ruling

The expenditure of money and the consumption of fungible goods integrated into the protected assets, when carried out to meet the vital needs of the beneficiary, are not considered a disposal of assets or rights. This applies to the requirement of maintaining contributions during the four years following the year of their contribution pursuant to Article 54.5 of the Personal Income Tax Law (LIRPF). The taxpayer must prove the existence of the assets, the specification of the vital needs, and the exceptional circumstances through means of proof admitted in Law.

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