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V0940-25 27 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · clases pasivas

Pensions for passive classes exempt from IRPF if absolute incapacity arises after retirement

The consultant, already retired, received a recognition of absolute and permanent incapacity for any work. The question is whether the new disability pension is subject to IRPF.

The question raised

Whether the pension currently being received is subject to Personal Income Tax (IRPF), and therefore, whether the corresponding withholding tax must be applied.

The DGT's ruling

The pension for disability under the civil service retirement scheme is exempt from Personal Income Tax (IRPF) if the injury or illness completely disables the recipient from any profession or trade. According to the TEAC criterion, this exemption applies whether the disability exists at the time of retirement or occurs subsequently, prior to the compulsory retirement age, due to the worsening of the illness. In this case, as the absolute incapacity is recognized after retirement, the requirements of Article 7.g) of the LIRPF are met.

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