Disability and Personal Income Tax (IRPF): requirements for the increase in deductible expenses

The Directorate General of Taxes (DGT) has issued a relevant ruling for persons with disabilities who pay Personal Income Tax (IRPF). The inquiry focuses on determining whether it is possible to apply the increase in tax-deductible expenses when the taxpayer carries out a self-employed economic activity.

What the DGT has ruled

The administration has determined that, to access the increase in deductible expenses for disability, two requirements must occur simultaneously: possessing the degree of disability required by the regulations and holding the status of an active worker. The ruling specifies that the concept of an active worker requires the effective provision of remunerated services as an employee, under the organization and direction of an employer.

Consequently, the exercise of a self-employed economic activity does not allow for fulfillment of the active worker requirement necessary for this specific tax benefit. The applicable regulations in this case are Law 35/2006 on IRPF and its Regulation (RD 439/2007).

What this means for you

If you are a person with a disability and receive income from employment, this ruling clearly delimits the scope of your right to the deduction. The benefit is not generally applicable to everyone who has a degree of disability, but is strictly linked to the nature of the employment relationship. If your income comes from self-employment or your own economic activity, you will not be able to apply this increase in expenses in your tax return.

What you should do

It is fundamental to verify the nature of the income that makes up your taxable base. If your income derives from an employment relationship as an employee, you can evaluate the application of this increase according to the disability requirements established by law. Given that the interpretation of the active worker status is restrictive, it is recommended to assess each particular situation to ensure that the origin of the income complies with the requirements set by the DGT.