Annuities for food in favor of people other than children

In accordance with the provisions of Article 143 of the Civil Code, spouses, ascendants and descendants, as well as siblings are mutually obliged to provide support in the cases and terms indicated in the aforementioned article. For the purposes of PIT, it is necessary to distinguish the following assumptions:

• Child support annuities .

  For the payerThe amounts paid as child support by court order do not reduce the general tax base. When the amount of said annuities is less than the general taxable base and there is no right to apply the minimum for descendants, they are subject to separate taxation in order to limit the progressivity of the tax scales. 

  The liquidation treatment of the annual alimony payments in favor of the children, the amount of which is less than the general taxable base subject to tax, is discussed in Chapter 15.

  For children receiving of said annuities, they constitute exempt income, provided that they are received pursuant to a court decision.

• Alimony annuities for other people.

  For the payerThe amounts paid as alimony to persons other than children, provided they are set by judicial decision, reduce the general tax base of the payer without it being able to be negative as a result of this reduction. The remainder, if any, will reduce the taxable savings base, without the latter being able to become negative as a result of said reduction.

  For the recipient of the same, these annuities constitute employment income not subject to withholding.