Withholding tax on personal income tax

The pensions, whose amount exceeds the legally established annual amount, are subject to taxation under the terms established in the regulations for Personal Income Tax (IRPF) and submitted, when appropriate, to the system of tax withholdings, with the following exceptions:

• Pensions arising from Acts of terrorism
  
• Any form of financial assistance received by those affected by the human immunodeficiency virus, as provided for in Royal Decree-Law 9/1993 of 28 May.
  
• Pensions for those who suffered injuries or mutilations during or as a result of the civil war (1936–1939), whether under the State Civil Service Pension Scheme or under special legislation enacted for that purpose.
  
• Pensions for permanent disability or unfitness for service under the Civil Service Pension Scheme, provided that the injury or illness giving rise to such pensions renders the pensioner completely unable to carry out any profession or trade.
  
• Orphan’s pensions.
  
• Compensation for time spent in prison as a result of the circumstances set out in Law 46/1977 of 15 October on Amnesty.
  

For the purposes of personal income tax, pensioners in the Civil Service Pension Scheme who are in receipt of a retirement pension or a pension due to incapacity or unfitness for work are deemed to have a disability of 33 per cent or more, without needing to provide proof of the recognised degree of disability by means of a certificate issued by the Institute for the Elderly and Social Services (IMSERSO) or the competent body of the Autonomous Communities.