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V1337-24 7 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensión no contributiva

Non-contributory disability pensions may be exempt if absolute incapacity or severe disability requirements are met

A query was raised regarding whether a non-contributory disability pension and a third-party assistance allowance are exempt from Personal Income Tax (IRPF). The Tax Agency responded that the pension may be exempt if it pertains to absolute permanent incapacity or severe disability, whereas the third-party assistance allowance is taxed as employment income without exemption.

The question raised

Whether said income is exempt from taxation.

The DGT's ruling

Non-contributory disability pensions are subject to Personal Income Tax (IRPF), but may be exempt if the requirements for absolute permanent disability or severe disability are met pursuant to Article 7.f) of the LIRPF. Conversely, the third-party assistance allowance is taxed as income from employment and is not subject to the exemptions provided in Article 7 of the Tax Law.

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