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V5317-16 15 December 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad permanente total

Total permanent disability pensions are not exempt from Personal Income Tax (IRPF)

A query was raised regarding whether a total permanent disability pension qualifies for the exemption under Article 7(f) of the Personal Income Tax Law (LIRPF). The Directorate General for Taxes (DGT) ruled that only pensions for absolute disability or severe disability are exempt.

The question raised

Whether the application of the exemption established in Article 7.f) of the LIRPF is possible.

The DGT's ruling

The exemption under Article 7.f) of the LIRPF applies solely to benefits for absolute permanent disability or severe invalidity. Pensions for partial or total permanent disability under the Public Social Security Regime must be taxed as income from employment.

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