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V1628-18 12 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subsidio

Subsidies for caring for minors with serious illnesses are exempt from Personal Income Tax (IRPF)

A query was raised regarding whether the subsidy intended to compensate for loss of income due to reduced working hours to care for minors with cancer or other serious illnesses is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that it is exempt, as it constitutes family assistance for the care of minor children.

The question raised

Whether said subsidy is exempt from taxation under Personal Income Tax.

The DGT's ruling

The subsidy aims to compensate for the loss of income resulting from the reduction of working hours for the direct, continuous, and permanent care of minors. As its purpose is the care of minor children, these family benefits and aids received from Public Administrations are exempt from taxation pursuant to Article 7.z) of the Personal Income Tax Law.

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