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V3182-23 11 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensión no contributiva

Non-contributory disability pensions may be exempt if absolute permanent disability or severe invalidity is proven

A query was raised regarding whether a non-contributory disability pension for an individual with 98% disability and judicial incapacity is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) indicates that while these pensions are generally taxable, an exemption applies in cases of absolute permanent disability or severe invalidity.

The question raised

Whether a non-contributory invalidity pension is exempt from Personal Income Tax (IRPF) for a person with a disability degree of 98 percent who has been judicially declared incapacitated.

The DGT's ruling

Non-contributory Social Security pensions are subject to Personal Income Tax (IRPF) pursuant to Article 17.2.a) of the Personal Income Tax Law (LIRPF). However, Article 7.f) of the same law exempts benefits for absolute permanent disability or severe invalidity. Compliance with these requirements is a matter of fact that must be proven before the Administration.

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