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V0255-19 7 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending on essential needs does not constitute a disposal of assets within protected assets

A query was raised regarding whether using funds to cover the essential needs of a person with a disability constitutes a disposal of assets that would require the repayment of tax benefits. The Directorate General for Tax (DGT) has determined that such expenditure should not be considered a disposal for the purposes of maintaining protected assets.

The question raised

Whether the detailed expense concepts incurred during the tax period of the contribution or in the following four years should not be understood as a disposal of assets for the purposes of the provisions of Article 54.5 of the LIRPF.

The DGT's ruling

The expenditure of money and the consumption of fungible goods to meet the vital needs of the beneficiary is not considered a disposal of assets or rights pursuant to Article 54.5 of the LIRPF. Notwithstanding, the expenditure must not prevent the effective constitution and maintenance of the protected assets during the four years following the contribution. The concurrence of vital needs and the existence of the assets are matters of fact that the taxpayer must substantiate.

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