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V0232-24 29 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

30% tax reduction cannot be applied to retirement benefits from collective insurance

An executive has enquired whether the 30% Personal Income Tax (IRPF) reduction applies when receiving a retirement benefit from a collective insurance scheme used to fulfil pension commitments. The Directorate General for Tax Assurance (DGT) has ruled that such benefits are not entitled to this reduction.

The question raised

Possibility of applying the 30 percent reduction in Personal Income Tax upon receipt of the survival benefit.

The DGT's ruling

Retirement benefits from collective insurance contracts that implement pension commitments are considered income from employment pursuant to Article 17.2.a) 5.ª of the LIRPF. As they are classified under said section, they are excluded from the scope of application of the 30% reductions provided for in Article 18 of the same law. Therefore, the amount of the benefit is fully integrated into the taxable base without reduction.

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