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V1021-19 9 May 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IRPF · rendimientos del trabajo

Pension schemes are subject to Income Tax for the beneficiary once benefits become payable

A query was raised regarding the taxation of pension schemes, credit rights, and legacies with an obligation to preserve assets following a death. The Directorate General for Taxes (DGT) clarifies that pension schemes are subject to Personal Income Tax (IRPF) for the beneficiary, and that credit rights must be included in Inheritance Tax.

The question raised

Taxation of pension plans.

The DGT's ruling

Pension plan benefits are taxed in the recipient's Personal Income Tax as income from employment in the period in which they become due. The credit rights of the deceased must be included in the Inheritance Tax taxable base at their real value. Assets bequeathed with an obligation to preserve them are taxed as if they were received as a usufruct. Fideicommissaries are taxed at the time of the death of the fiduciaries.

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