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V1961-22 15 September 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Collective insurance benefits under pension commitments are taxed as employment income

A worker requested clarification on the taxation of a lump-sum survival benefit from a collective insurance policy. The DGT ruled that, as these policies implement pension commitments, the benefit is taxed as employment income for Personal Income Tax (IRPF) purposes.

The question raised

Corresponding taxation for this benefit.

The DGT's ruling

The provision of a collective deferred capital insurance policy that instruments pension commitments is considered earned income pursuant to Article 17.2.a) 5th of the LIRPF. Upon being classified as earned income, the insurance entity must apply the corresponding withholding tax in accordance with Article 101.1 of the LIRPF. For insurance policies contracted before 2006, the transitional regime of the eleventh transitional provision of the LIRPF may apply.

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