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V0596-22 21 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad permanente absoluta

Absolute permanent disability pensions are exempt from Income Tax from the date of the resolution

A taxpayer inquired whether the exemption for their absolute disability pension could be applied retroactively to the date they went on sick leave. The Directorate General of Taxes (DGT) ruled that the exemption applies to benefits paid from the date of the resolution recognising the disability.

The question raised

The moment from which the right to the exemption established in Article 7.f) of the LIRPF is held.

The DGT's ruling

Social Security benefits for absolute permanent disability or severe invalidity are exempt from Personal Income Tax (IRPF) pursuant to Article 7.f) of the Personal Income Tax Law (LIRPF). The exemption applies to benefits paid from the date of the resolution recognizing the disability. If the resolution were to have retroactive effects, benefits from previous dates would also be exempt, although according to the documentation provided, the exemption applies from the resolution dated August 11, 2021.

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