Taxation of civil servants' salaries during leave for children's serious illness

The Directorate General of Taxes (DGT) has issued a relevant ruling for public officials who request leave to care for minor children with serious illnesses, such as cancer. The central issue lies in determining whether the amounts received during this period are exempt from taxation under Personal Income Tax (IRPF).

What the DGT has ruled

The inquiry asked whether the income from work received during the enjoyment of this specific leave was exempt from taxation pursuant to Article 7.z) of the Personal Income Tax Law (LIRPF). The DGT has concluded that the application of said exemption is not appropriate.

The basis for this decision lies in the nature of the income. The exemption provided for in the regulations applies to subsidies or social aid, not to salary remuneration. In the case of civil servants enjoying this leave, the administration recognizes their receipt of full remuneration for their work. Since it is not a compensatory economic benefit or a subsidy, but rather a salary for the position they hold, the income maintains its character as income from work.

What this means for you

If you are a public official and find yourself in a situation where you are on leave to care for a minor child with a serious illness or cancer, you should keep the following in mind:

• The amounts you receive during this period are not exempt from taxation.
• This income is considered income from work for all legal purposes.
• The LIRPF regulations do not allow the social aid exemption to be applied to full salaries.

What you should do

Since this ruling directly affects the taxable base of civil servants in these circumstances, it is necessary to analyze the particular situation of each taxpayer. It is recommended to assess the composition of the remuneration received and ensure that the tax return correctly reflects the nature of this income to avoid possible requests for information from the Tax Administration.