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V1672-14 1 July 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · exención subjetiva

UN and UNJSPF pensions exempt from Spanish income tax

The UN inquires whether income from Spanish sources earned by it and its pension fund (UNJSPF) is tax-exempt and how to prove it. The DGT responds that the exemption under the Convention on Privileges and Immunities applies to both entities, except where the income constitutes remuneration for public services.

The question raised

Whether the exemption established in the Convention of 13 February 1946 on the Privileges and Immunities of the United Nations, to which Spain adhered by Instrument of 13 July 1974 (BOE of 17/10/1974), is applicable to income from Spanish sources obtained by the United Nations, and specifically, income derived from assets managed by the UNJSPF, and if, in such case, said income is excluded from withholding in Spain, as well as the formal procedure to make it effective.

The DGT's ruling

Income from Spanish sources of the UN is exempt from direct taxes, including IRNR, pursuant to the 1946 Convention. This exemption extends to the UNJSPF as it is a subsidiary organ of the UN. To avoid withholding, the exemption must be substantiated by a UN certification provided to the financial institution or payer. If the income is obtained via a non-transparent entity, the exemption is not applicable due to its subjective nature.

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