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V3372-20 17 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Retirement and widowhood pensions taxed as employment income under the general withholding system

A taxpayer inquired about the applicable withholding tax rate for receiving both a widowhood pension and a retirement pension. The DGT ruled that these benefits are classified as employment income and must be subject to the standard Personal Income Tax (IRPF) withholding system.

The question raised

The type of withholding tax that applies.

The DGT's ruling

Social Security pensions and other public benefits for retirement or widowhood are considered income from employment, unless they are exempt due to absolute permanent disability or severe invalidity. As they do not fall under the special procedure for passive benefits, the general withholding rate established in Article 86.1 of the RIRPF applies. The calculation must follow the steps for determining the base, personal and family minimums, and the withholding amount.

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