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V2226-24 15 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Pension plan benefits for persons with disabilities are only exempt if contributions were made under the special regime

A query was raised regarding whether the redemption of a pension plan for a child with a mental disability is exempt from Personal Income Tax (IRPF) and whether it should be subject to withholding tax. The Directorate General for Taxes (DGT) clarifies that the exemption depends on whether the contributions were made under the special tax regime for persons with disabilities.

The question raised

Whether the amounts obtained as a consequence of the redemption of the pension plan are exempt from taxation under the IRPF by virtue of Article 7.w) of the LIRPF, and, consequently, whether said amounts are received without withholding tax in accordance with Article 75.3.a) of the Tax Regulation.

The DGT's ruling

The exemption under Article 7.w) of the LIRPF applies to benefits derived from contributions made to social security systems for persons with disabilities (pursuant to Article 53 of the LIRPF). If the contributions were made under the general regime, the exemption cannot be applied even if a disability exists upon receipt of the benefit. Only if the exemption requirements are met will the income not be subject to withholding according to the Tax Regulation.

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