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V1676-19 8 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas con progresividad

Excess personal and family allowance does not reduce the savings taxable base if progressive tax-exempt income exists

A resident in Spain receiving a Dutch pension that is exempt with progressivity asks whether any excess of the personal and family allowance over the general taxable base should be applied to reduce the savings taxable base. The DGT rules that it should not, as the general base must be considered increased by such exempt income.

The question raised

Starting from the consideration of a pension of 28,020 euros as exempt income in Spain with progressivity, the taxpayer states that the amount of their general taxable base would be lower than the amount of the personal and family allowance (as stated, the reduced net employment income would amount to 2,860 euros, which would go to the general taxable base, and the personal and family allowance would be 6,700 euros, being over 65 years of age), posing the question of whether the amount by which said allowance exceeds their general taxable base should be applied to the savings taxable base, thereby reducing it.

The DGT's ruling

To determine whether the personal and family allowance should be applied to the savings taxable base, the reference to the general taxable base must be understood as the general base increased by exempt income with progressivity. Since the personal and family allowance is lower than the sum of the general taxable base and the exempt income with progressivity, there is no remainder to reduce the savings taxable base.

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