Skip to content
Back to index
V2827-18 26 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Social welfare benefits for illness are only exempt if intended for health recovery

The tax treatment of various social welfare benefits granted under collective agreements is examined. The DGT determines that only benefits for illness expenses not covered by Social Security and intended for health recovery are exempt.

The question raised

Tax treatment in Personal Income Tax regarding said aid.

The DGT's ruling

Economic aid for illness constitutes employment income subject to Personal Income Tax (IRPF), except for those intended for medical treatment or health recovery for expenses not covered by the Health Service or Mutual Fund. Funeral benefits are exempt up to the limit of the expenses incurred. Any other social aid intended to alleviate the worker's economic situation is considered taxable income.

Book your free first meeting