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V1090-20 28 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The retirement award from the Ministry of Public Works is taxed as employment income

An inquirer asks whether the retirement assistance received from the Ministry of Public Works is exempt from Personal Income Tax (IRPF). The DGT responds that no exemption exists and that it must be taxed as employment income.

The question raised

Whether said assistance is exempt from Personal Income Tax or, if not, where it must be reported in the tax return form.

The DGT's ruling

The retirement payment constitutes employment income pursuant to Article 17.1 of the LIRPF, as it is consideration derived from the employment relationship. There is no legal provision supporting the exemption of said assistance. It must be reported in the boxes corresponding to employment income.

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