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V1149-20 29 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Withdrawal of a Brazil-linked pension from a employment contract taxed as employment income in Spain

A Spanish resident asks whether he must tax a Brazil-based pension arising from a previous employment relationship. The DGT determines that this amount constitutes employment income.

The question raised

Whether the withdrawal of the amount from the fund must be subject to Personal Income Tax.

The DGT's ruling

The amount received from the withdrawal of a fund linked to the employment contract is considered earned income pursuant to Article 17.1 of the Personal Income Tax Law (LIRPF). As they derive from the employment relationship, these considerations are taxable in Spain regardless of their designation or nature.

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