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V1959-19 25 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Public employee paternity leave pay exempt from Income Tax subject to certain limits

A Social Security official inquired whether the remuneration received during paternity leave is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, following the amendment to Article 7(h) of the Personal Income Tax Law, such payments are exempt up to the maximum benefit amount recognised by Social Security.

The question raised

Whether the remuneration received during paternity leave due to birth by public employees is exempt pursuant to the third paragraph of Article 7 h) of the Tax Law.

The DGT's ruling

The remuneration received by public employees during leave for childbirth, adoption, guardianship, or paternity is exempt from taxation pursuant to the third paragraph of Article 7 h) of the Personal Income Tax Law (LIRPF). This exemption is limited to the amount of the maximum benefit recognized by the Social Security for the corresponding concept. Any excess over said limit shall be taxed as income from employment.

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