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V0302-18 8 February 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income tax filing obligation depends on staying below €22,000 in employment income and €1,600 in investment income

A taxpayer asks whether they must file an income tax return after redeeming a pension plan with contributions made before 2006, alongside other investment income. The Directorate General for Taxes (DGT) clarifies that pension plan benefits are classified as employment income and outlines the income thresholds for exemption from filing.

The question raised

Whether, given said data, there is an obligation to file an individual personal income tax return.

The DGT's ruling

Pension plan benefits are considered earned income and must be included in the general taxable base. If the only income consists of these earnings and investment income subject to withholding, there is no obligation to file a tax return if the earned income does not exceed €22,000 and the investment income does not exceed €1,600 gross per year. If the investment income limits are exceeded, filing a tax return shall be mandatory.

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