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V0903-18 9 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Reduction of Personal Income Tax (IRPF) taxable base for contributions to protected assets for persons with disabilities

The taxpayer enquires about the tax treatment of contributions made to establish protected assets for their brother, who has a disability. The Directorate General for Taxes (DGT) explains the limits for the reduction of the taxable base and clarifies that expenditure on essential needs does not constitute a disposal of assets for the purpose of maintaining the tax benefit.

The question raised

Taxation of contributions in Personal Income Tax for the consultant and for her brother with a disability.

The DGT's ruling

Contributions to protected assets allow for a reduction in the contributor's taxable base with an individual limit of 10,000 euros per year and a collective maximum of 24,250 euros. The expenditure of money and the consumption of fungible goods to meet the vital needs of the beneficiary are not considered acts of disposal for the purposes of the four-year maintenance requirement under Article 54.5 of the Personal Income Tax Law. Contributions exceeding the annual limits shall be taxed under the Inheritance and Gift Tax.

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