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V0985-22 5 May 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits are fully taxable for the beneficiary, regardless of the division of community property

A pension plan participant inquired whether, following a divorce, benefits should be taxed according to the division of community property established in their regulatory agreement. The DGT ruled that benefits are taxed exclusively for the beneficiary as employment income based on the total amount received.

The question raised

Taxation of the benefit received as a beneficiary of the pension plan.

The DGT's ruling

Pension plan benefits are attributed exclusively to the natural persons in whose favor they are recognized, regardless of how the community property regime has been dissolved or to whom the funds are allocated. These amounts are taxed under Personal Income Tax (IRPF) as employment income for the total amount received. The potential 40% reduction for contributions made prior to 2007 is subject to the deadlines set forth in the twelfth transitional provision of the Personal Income Tax Law (LIRPF).

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