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V0690-17 16 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Subsidies for adapted transport received from a local council are considered capital gains

A taxpayer with a disability has enquired whether the adapted transport subsidy received from their local council is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) indicates that the amount constitutes a capital gain, although it cannot determine whether the social aid exemption applies.

The question raised

Tax treatment in the Personal Income Tax of said aid.

The DGT's ruling

The amounts received are considered capital gains pursuant to Article 33.1 of the Personal Income Tax Law. Regarding the exemption under Article 7.y), the DGT cannot determine whether the aid is exempt without knowing whether the beneficiary lacks sufficient economic means according to the applicable regulations.

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