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V3281-17 21 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensión compensatoria

Lump-sum payment in lieu of compensatory pension allows for tax base reduction

A taxpayer inquired whether a €30,000 payment to an ex-spouse, judicially agreed upon to substitute a compensatory pension, has tax implications for Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such substitution allows for the application of the reduction provided for compensatory pensions.

The question raised

What is the tax impact of the 30,000 euros delivered to their former spouse in their Personal Income Tax return.

The DGT's ruling

The substitution of compensatory pension with the delivery of capital in assets or money, pursuant to Article 99 of the Civil Code, allows for the application of the reduction in the taxable base established in Article 55 of the Personal Income Tax Law. This reduction is applicable to compensatory pensions paid by judicial decision.

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