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V0944-25 27 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad permanente absoluta

No retention of 30% allowed on absolute disability pension

A person requests the INSS to apply a voluntary 30% withholding on their absolute disability pension. The DGT replies that, as it is an exempt income, no withholding is required.

The question raised

Whether the requested 30% withholding rate may be applied to the absolute disability pension received.

The DGT's ruling

Pensions for permanent disability in the absolute degree or great invalidity are exempt from taxation pursuant to Article 7.f) of the Personal Income Tax Law (LIRPF). As they are exempt income, there is no obligation for the paying entity to perform withholding or payment on account. Therefore, it is not possible to exercise the right to request a higher withholding rate when the income is not subject to taxation.

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