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V3063-20 13 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The €2,000 expense deduction cannot be applied if the disability pension is exempt from Income Tax

A query was raised regarding whether a Social Security pension exempt due to permanent disability allows for the application of the €2,000 deduction for other expenses. The Directorate General for Taxes (DGT) ruled that such a deduction is not possible.

The question raised

Whether a taxpayer receiving a Social Security pension exempt from IRPF taxation under Article 7.f) of the LIRPF may apply the deductible expense of 2,000 euros per annum established in Article 19.2.f) of the LIRPF in their IRPF tax return.

The DGT's ruling

As the employment income is exempt from taxation pursuant to Article 7.f) of the LIRPF, the amount of 2,000 euros per annum for other expenses is not deductible. This is because the application of said expense cannot result in a negative net employment income, as its amount is limited to the gross income reduced by the remaining deductible expenses.

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