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V1776-22 27 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Pension scheme withdrawals taxed as employment income rather than savings income

A taxpayer queried whether pension scheme withdrawals could be taxed as savings income or deferred over time. The DGT ruled that pension scheme benefits are always classified as employment income and must be included in the general tax base.

The question raised

1. Possibility of classifying the income obtained as a result of the redemption of their pension plan as savings income or shifting its imputation to future tax periods, instead of applying the tax treatment of earned income to be included in the general tax base.

The DGT's ruling

Benefits received by pension plan beneficiaries are considered earned income pursuant to Article 17.2.a).3 of the LIRPF. Therefore, they must be included in the recipient's general tax base. Regarding temporal imputation, the income is imputed to the tax period in which it becomes due to the recipient.

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