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V0336-14 11 February 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits must be taxed entirely as employment income

The inquirer asks whether they can apply the transitional regime for mutual societies to tax only 75% of their benefit. The DGT rules that, as it is a pension plan and not a mutual society, the total amount of the income must be taxed.

The question raised

Corresponding tax treatment of the benefit. In particular, whether it is possible to include only 75 percent of the income received in the Personal Income Tax base through the application of the transitional regime for social welfare mutual societies.

The DGT's ruling

Pension plan benefits are considered earned income and must be fully included in the general tax base. The transitional regime that allows for the inclusion of only 75% is not applicable because the benefit is not paid by a social welfare mutual society.

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