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V0166-16 19 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta exenta

Care allowance for sick minors is tax-exempt; mutual insurance company and SEPE are two separate payers

The taxpayer inquired whether the allowance for caring for a minor with a serious illness is tax-exempt and whether the mutual insurance company and the SEPE (State Public Employment Service) constitute two separate payers. The DGT ruled that the allowance is tax-exempt and that there are two independent payers.

The question raised

Inquiry is made regarding the temporal imputation of the benefit for the care of a minor affected by cancer or another serious illness and regarding the consideration of the existence of one or two payers.

The DGT's ruling

The benefit for the care of a minor affected by cancer or another serious illness is exempt income for Personal Income Tax purposes, as it constitutes family assistance linked to the care of minor children. Regarding the obligation to file a tax return, the Mutual Insurance Company and the State Public Employment Service are two distinct payers due to their different legal personalities. The threshold for filing will depend on whether the amounts from the second payer exceed 1,500 euros.

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