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V1323-20 8 May 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · base imponible general

Dependency insurance premiums may be deductible from the taxable base within legal limits

The taxpayer asks whether contributions to dependency insurance can reduce the taxable base in a joint Personal Income Tax (IRPF) return. The Directorate General for Taxes (DGT) confirms that they can, provided the reduction limits established by law are respected.

The question raised

Possibility of reducing the taxable base also through the contribution made to dependency insurance in the Personal Income Tax corresponding to the 2019 tax year.

The DGT's ruling

Premiums paid for private insurance policies covering exclusively the risk of severe dependency or high dependency may be deducted from the general taxable base. This deduction may be requested by the taxpayer or by relatives up to the third degree, a spouse, or dependents. The joint reduction limit for these concepts may not exceed 8,000 euros per year. In joint taxation, the reduction limits are applied individually for each participant.

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