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V0210-24 27 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Disability exemption cannot be applied to pension plan benefits under the general regime

A taxpayer with absolute permanent disability inquired whether they could apply the disability exemption when redeeming an occupational pension plan as an annuity. The Directorate General for Taxes (DGT) ruled that this exemption only applies if the plan was specifically established under the special regime for persons with disabilities.

The question raised

Possibility of applying the exemption provided for in Article 7.w) of Law 35/2006.

The DGT's ruling

The exemption under Article 7.w) of the Personal Income Tax Law (LIRPF) is only applicable if the benefits derive from contributions made to pension plans established for the benefit of persons with disabilities. This special regime cannot be applied to benefits deriving from contributions made under the general regime, even if a disability is recognized. The election for the special regime must be made prior to the making of the contributions.

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