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V1486-17 12 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensiones no contributivas

Disability pensions and third-party supplements may be exempt

The consultant asks whether their non-contributory disability pension and third-party supplement are taxable under personal income tax. The DGT states that although these are considered earnings from work, they may be exempt if the conditions of absolute permanent disability or severe disability are met.

The question raised

Whether said pension is subject to Personal Income Tax (IRPF), considering that said pension is received due to being disabled and incapacitated for all professions and trades, in addition to requiring assistance from third parties for the essential acts of daily living.

The DGT's ruling

Non-contributory pensions and their supplements derived from the General Social Security Scheme are earned income subject to taxation. However, pursuant to Article 7.f) of the Personal Income Tax Law (LIRPF), benefits for absolute permanent disability or severe invalidity are exempt. The exemption shall depend on the pension meeting the requirements of said disability gradations.

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