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V3079-20 14 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · guarda y custodia compartida

In joint custody, the personal allowance for descendants is apportioned and child maintenance tax treatment does not apply

A query was raised regarding whether, in a joint custody arrangement involving shared expenses, the tax treatment for child maintenance annuities can be applied. The Directorate General of Taxes (DGT) ruled that, under joint custody, both parents are entitled to a pro-rated personal allowance for descendants, which precludes the application of the special provisions set out in Articles 64 and 75 of the Personal Income Tax Law (LIRPF).

The question raised

Clarification on the treatment of common expenses and, in accordance with the 2017 ruling of the TSJM, their tax treatment as child support.

The DGT's ruling

In cases of joint custody, either parent may opt for joint taxation with the child. The right to the minimum allowance for descendants belongs to both parents, prorated in equal parts, provided that the requirements regarding cohabitation and the minor's income are met. Since they are entitled to the minimum allowance for descendants, the special tax treatment for child support annuities provided for in Articles 64 and 75 of the Personal Income Tax Law (LIRPF) is not applicable.

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