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V0318-20 11 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · mínimo por descendientes

Child support annuity treatment applicable even if the child is not the bank account holder

A parent inquired whether receiving child support payments into the mother's bank account (rather than the child's) prevents them from applying the child support deduction in their Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that this treatment can be applied provided the annual amounts specified in the agreement are effectively paid.

The question raised

Once their child has reached the age of majority, for the purposes of applying the special regime provided for in Articles 64 and 75 of the LIRPF, in the event that the inquirer deposited the maintenance pension into a bank account whose ownership does not correspond to the child, it is questioned whether such deposit would not be considered a maintenance pension in favor of the child, and whether the father would lose the possibility of considering it as such in his IRPF tax return.

The DGT's ruling

Parents who do not reside with their children but provide maintenance by judicial resolution may choose between the minimum for descendants or the treatment of maintenance annuities (Articles 64 and 75 LIRPF). To apply the latter regime, the taxpayer must effectively satisfy the annuities fixed in the agreement, regardless of whether the child is the holder of the account designated for the deposit. Likewise, the child may apply these special provisions even if they have reached the age of majority, provided they are legally incapacitated.

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