Skip to content
Back to index
V0556-22 18 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Non-exempt pensions are subject to Income Tax withholding under the general system

A person with a disability enquired about the applicable Income Tax (IRPF) withholding rate for their retirement pension. The Directorate General for Tax (DGT) has ruled that if the pension is not exempt due to absolute permanent disability or severe invalidity, the general withholding rules for employment income apply.

The question raised

The type of withholding tax applicable to the receipt of their pension.

The DGT's ruling

Social Security pensions are considered income from employment, unless they are exempt due to absolute permanent disability or severe invalidity. If not exempt, the withholding system provided for in Article 99 of the Personal Income Tax Law (LIRPF) shall apply. The calculation is performed following the general procedure set forth in Articles 80 et seq. of the Personal Income Tax Regulations (RIRPF), unless the taxpayer falls under the special procedure for passive benefits.

Book your free first meeting