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V2227-24 15 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Exemption of pension plan benefits for persons with disabilities depends on contributions being 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) responds that the exemption only applies if 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 provided in Article 7.w) of the LIRPF applies to benefits derived from contributions made to social security systems for persons with disabilities. This regime cannot be applied to benefits derived from contributions made under the general regime, even if a disability is recognized at the time of receiving the benefit. If the exemption requirements are met, there shall be no obligation to apply withholding tax pursuant to the Tax Regulation.

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