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V3196-23 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 classified as absolute incapacity or severe disability

A taxpayer with an 82% disability rating and a need for third-party assistance has enquired whether their non-contributory disability pension is exempt from tax. The DGT indicates that while these pensions are generally taxable, an exemption applies if the benefit is recognised as absolute permanent incapacity or severe disability.

The question raised

Whether said pension is exempt from taxation.

The DGT's ruling

Non-contributory Social Security pensions are earned income subject to taxation. However, Article 7.f) of the Personal Income Tax Law exempts benefits for absolute permanent disability or severe invalidity. The exemption will depend on whether the pension received meets the requirements of one of these two degrees of disability.

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