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V3116-23 1 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Pensions subject to IRPF may be subject to withholding if not exempt due to absolute permanent disability or severe disability

A taxpayer asks whether their father, a pensioner with 88% disability, should have had IRPF withholdings or what percentage applied. The DGT clarifies that pensions are only exempt if recognised as having absolute permanent disability or severe disability; otherwise, the general withholding system applies.

The question raised

Whether any withholding tax should be applied from the date the disability was recognized. Otherwise, what is the withholding tax percentage that should have been applied to his father since March 2021.

The DGT's ruling

Pensions are income from employment subject to withholding tax pursuant to Article 99 of the Personal Income Tax Law (LIRPF), unless they are exempt under Article 7.f of the same law. The calculation of the withholding tax must follow the general procedure set forth in the Personal Income Tax Regulations, applying the corresponding personal and family reductions and minimums. If the disability increases the personal and family minimum, the withholding tax rate must be regularized following communication to the payer.

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