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V2753-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

German child benefits are exempt from Personal Income Tax (IRPF)

A taxpayer inquired whether financial aid granted by the German Government for having dependent children is exempt from Personal Income Tax. The Directorate General for Taxes (DGT) ruled that such benefits are indeed exempt.

The question raised

To determine whether said benefit is exempt from Personal Income Tax.

The DGT's ruling

Public benefits for birth, childbirth, adoption, maternity, paternity, dependent children, and orphanhood are exempt from taxation pursuant to Article 7 h) of the Personal Income Tax Law (LIRPF). In this case, the financial aid from the German Government for having dependent children is covered by said exemption.

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