Skip to content
Back to index
V1205-17 18 May 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits are taxed as employment income in their entirety

A query was made regarding the tax treatment of benefits from a pension plan redeemed due to retirement. The DGT ruled that these amounts are taxed as employment income within the general tax base.

The question raised

Tax treatment of benefits received under Personal Income Tax.

The DGT's ruling

Pension plan benefits are considered earned income due to their nature as deferred salary. They are taxed on the total amount received, regardless of the contributions made, and must be included in the general taxable base of Personal Income Tax (IRPF). This criterion is based on Articles 17.2.a) and 14.1.a) of Law 35/2006.

Book your free first meeting