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V0963-18 11 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular income cannot be applied to disability pensions

In 2018, an individual received a lump-sum payment consisting of accumulated increases to their disability pension for the years 2015, 2016, and 2017. The inquiry sought to determine whether the reduction for irregular employment income under Article 18 of the Personal Income Tax Act (LIRPF) could be applied.

The question raised

Whether the reduction for irregular employment income under Article 18 of the LIRPF is applicable.

The DGT's ruling

Social Security pensions cannot apply the 30% reduction provided in section 2 of Article 18 of the LIRPF, as they are income categorized under Article 17.2.a). Furthermore, the reduction in section 3 does not apply because the payment is not a lump-sum benefit, but rather an accumulation of monthly payments that are imputed to the period in which they become due.

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