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V3241-17 15 December 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Benefits from collective insurance schemes providing pension commitments are taxed as employment income

A retiree has enquired about the taxation of benefits from a collective insurance scheme that provides pension commitments. The DGT has determined that these benefits are classified as employment income and do not qualify for reductions applicable to lump-sum payments.

The question raised

Taxation of the benefit.

The DGT's ruling

Retirement benefits from collective insurance policies that implement pension commitments are considered earned income to the extent that they exceed the fiscally imputed contributions and the employee's contributions. The 40 percent reduction provided for in the eleventh transitional provision is not applicable because the insurance was contracted after January 2006. Furthermore, the 30 percent reduction for irregular income is not applicable, as Article 18 of Law 35/2006 expressly excludes income from Article 17.2.a).5.

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