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V1978-17 21 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mínima de inserción

Amounts exceeding the tax-exempt limit for social assistance are taxed as employment income

A query was made regarding the taxation of social assistance from autonomous communities or local authorities that exceeds the tax-exempt limit of 1.5 times the IPREM. The Directorate General for Taxes (DGT) ruled that any excess is considered employment income.

The question raised

Taxation of excesses.

The DGT's ruling

Minimum income benefits and other aid for groups at risk of social exclusion are exempt up to 1.5 times the IPREM. The amount exceeding said limit is considered income from employment pursuant to Article 17.2 of Law 35/2006. The corresponding withholdings according to the IRPF Regulation shall apply to this non-exempt portion.

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