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V3211-19 22 November 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits taxed as employment income without disability exemption if contributions were made under the general regime

A taxpayer with permanent incapacity and a 42% disability rate inquired about the taxation of benefits from their occupational pension plan. The DGT ruled that, as contributions made under the special regime for persons with disabilities were not proven, the general taxation regime applies.

The question raised

Taxation of the benefit received from the pension plan, whether in the form of a lump sum or an annuity.

The DGT's ruling

Pension plan benefits are considered earned income and must be included in the general taxable base. The exemption under Article 7.w) of Law 35/2006 is not applicable if contributions were made under the general regime, as the election for the special regime must precede the contributions. If the benefit is received as a lump sum, the 40% reduction could apply to the portion corresponding to contributions made before December 31, 2006, subject to the limits of the twelfth transitional provision.

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