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V1550-14 12 June 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

SOVI old-age disability pension is not considered tax-exempt income for IRPF

A query was raised regarding whether an old-age disability pension from the Mandatory Old-Age and Disability Insurance (SOVI) is exempt from taxation. The Directorate General for Taxes (DGT) ruled that, as it is classified as an early old-age pension rather than a disability pension, it does not meet the requirements for tax exemption.

The question raised

Whether the aforementioned pension is considered exempt income.

The DGT's ruling

Benefits for absolute permanent disability or severe invalidity are exempt under the Personal Income Tax Law. However, the old-age pension for invalidity from the SOVI is classified by the INSS as an early old-age pension. As it is not an invalidity pension per se, it is not covered by the exemption provided in Article 7.f) of the Personal Income Tax Law.

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