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V2577-17 10 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Absolute permanent disability pensions are exempt from Income Tax

A query was raised regarding whether Social Security pensions derived from absolute permanent disability should be subject to Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that such benefits are tax-exempt.

The question raised

Taxation of the pension under Personal Income Tax.

The DGT's ruling

Social Security benefits recognized due to absolute permanent disability or severe invalidity are exempt pursuant to Article 7.f) of the Personal Income Tax Law. This exemption includes the minimum supplement and any increases, improvements, or revaluations of the benefit from the established effective date.

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