Skip to content
Back to index
V3006-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income tax withholding on pensions depends on whether total annual amounts exceed exempt limits

An inquirer asks whether income tax (IRPF) will be withheld from a retirement pension of 1,167 euros per month. The DGT explains that the obligation to withhold depends on whether the total amount of income exceeds the limits established according to the taxpayer's family situation.

The question raised

If, as of January 2021, a person begins to receive a Social Security retirement pension in the monthly amount of 1,167 euros in 14 payments, and the taxpayer is unaware whether said amount is gross or net, it is questioned whether a monthly IRPF withholding will be applied to the amount of the pension to which they are entitled.

The DGT's ruling

Social Security pensions are considered income from employment. No withholding shall be applied if the total amount of income does not exceed the annual amount established in the Regulations, which is increased by 600 euros for pensions or passive income from the Social Security regime. If said limit is exceeded, the withholding rate resulting from the application of the general procedure shall apply.

Book your free first meeting