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V1101-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad permanente absoluta

Dependency benefits do not count towards the exemption limit for absolute incapacity pensions

A query was raised regarding whether economic benefits for care within the family environment should be added to an absolute incapacity pension when calculating the IRPF (Personal Income Tax) exemption limit. The Directorate General for Taxes (DGT) ruled that they should not, as they are distinct concepts and dependency benefits are already exempt by law.

The question raised

Whether, within the limit of the maximum benefit recognized by the Social Security, one must consider not only the pension but also the economic benefit derived from Law 39/2006 received, such that if the total amount resulting from the sum of the pension and the aforementioned benefit exceeds the maximum pension recognized by the Social Security, the excess must be taxed as employment income.

The DGT's ruling

The limit of the exempt amount of the permanent absolute disability pension is the amount of the maximum benefit recognized by the Social Security for that concept. The economic benefit for care in the family environment under Law 39/2006 must not be included in said limit as it is a different concept. Furthermore, said dependency benefit is exempt from Personal Income Tax (IRPF) pursuant to article 7.x) of the Personal Income Tax Law (LIRPF).

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