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V0252-22 14 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Income tax reduction for protected assets contributions cannot be applied if there is an obligation to repay

A query was raised regarding whether two persons with disabilities could apply for an income tax (IRPF) reduction for contributions made to their respective protected assets. The Directorate General for Taxes (DGT) ruled that this is not possible because contributions must be made as gifts; in this instance, a commitment to repay the funds exists.

The question raised

Application to both contributions of the Personal Income Tax (IRPF) reduction established for contributions to the protected assets of persons with disabilities.

The DGT's ruling

To apply the reduction for contributions to protected assets, such contributions must be made free of charge in accordance with Law 41/2003. If the contribution entails an obligation for the beneficiary to return the amount through a contribution to the assets of the contributor, it is not considered a contribution free of charge. Therefore, the Personal Income Tax (IRPF) tax benefits cannot be applied in this case.

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