Back to index
V0147-22 28 January 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de pensiones de empleo

Pension plan benefits paid upon death are taxed as employment income for IRPF purposes

A beneficiary inquired whether benefits from an occupational pension plan paid due to a relative's death should be taxed under Inheritance and Gift Tax or as a gift, and whether withholding tax applies. The DGT ruled that the benefit is taxed entirely under Personal Income Tax (IRPF) as employment income.

The question raised

Taxation of the benefit. In particular:

The DGT's ruling

Pension plan benefits, regardless of the contingency (including death), are taxed under Personal Income Tax as income from employment. As they are not subject to Inheritance and Gift Tax, the entirety of the benefit must be taxed under Personal Income Tax. Being classified as income from employment, the benefit is subject to withholding tax.

Book your free first meeting