Skip to content
Back to index
V2580-20 29 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad permanente parcial

Partial permanent disability benefits are not exempt from Personal Income Tax (IRPF)

A taxpayer inquired whether benefits received for partial permanent disability following a work accident are exempt from tax. The Directorate General for Taxes (DGT) ruled that neither the exemption for personal injury nor the exemption for Social Security benefits applies.

The question raised

Tax treatment that, for the purposes of Personal Income Tax, must be applied to the indicated benefit received. Application of the exemption provided in Article 7 d) of the Tax Law.

The DGT's ruling

The exemption for compensation for civil liability does not apply to Social Security benefits. For its part, the exemption for Social Security benefits only covers absolute permanent disability or severe invalidity. As it concerns a partial permanent disability, the exemption provided in Article 7.f) of the Personal Income Tax Law is not applicable.

Book your free first meeting