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V0643-17 14 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Reductions in pay for working fewer hours to care for a child with a serious illness are not exempt from Income Tax

A civil servant enquired whether the full remuneration received during a reduction in working hours to care for a child with a serious illness was exempt from taxation. The Directorate General for Taxes (DGT) ruled that these payments do not change their nature and remain employment income subject to Income Tax (IRPF).

The question raised

Tax treatment of the perceptions obtained during the leave, and whether these are exempt from taxation.

The DGT's ruling

The remuneration received by the civil servant during the leave for the care of a minor child with a serious illness does not change its nature. Therefore, it remains income from employment not exempt from Personal Income Tax (IRPF). The general procedure must be applied to determine the amount of withholding on the gross income.

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