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V1945-20 15 June 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits are taxed exclusively as employment income in the hands of the beneficiary

A taxpayer inquired about the tax treatment of pension plan benefits during the liquidation of a community of property. The DGT clarified that these benefits are always taxed in the hands of the beneficiary and are not affected by the method of dissolution of the matrimonial property regime.

The question raised

First question. Admissibility of the tax valuation carried out by the partitioner in the proposed allocation of assets, specifically regarding pension plans.

The DGT's ruling

Pension plan benefits are attributed exclusively to the natural persons in whose favor they are recognized and are taxed as employment income for the total amount received. The tax treatment is independent of the allocation made in the liquidation of the community property regime. If the benefit is received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided it is received in a single year. The reduction for compensatory pension only applies if the allocation is of that nature and not for other reasons.

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