Skip to main content
Practical manual for Income Tax 2020.

Transfer of the right to deduction

What does it consist of

When two or more taxpayers are entitled to apply any of the deductions in respect of the same descendant, ascendant or large family, the right to the deduction may be assigned to one of them.

It is considered that there is no profitable transfer for tax purposes for this transfer.

Cases in which the right is understood to be transferred in favor of another taxpayer

The right is deemed to be transferred in the following cases:

  • When two or more taxpayers are entitled to apply any of the deductions and have submitted a request for advance payment collectively, the right to the deduction will be deemed to have been transferred to the first applicant, who must record in the IRPF declaration the amount of the deduction and the full advance payment received.

  • In the remaining cases, the right to the deduction will be understood to be transferred in favor of the taxpayer who applies the deduction in his/her declaration, and this circumstance must be stated in the declaration of all taxpayers who have the right to the deduction, unless the transferor is not obliged to declare , in which case such transfer will be made by submitting form 121, which must be submitted within the period established in each fiscal year for submitting the IRPF declaration. See in this regard Order HFP/105/2017, of February 6, which approves form 121 "Personal Income Tax. Deductions for large families or those caring for persons with disabilities. Communication of the transfer of the right to deduction by taxpayers not required to file a return" ( BOE of 10). 

Note: In the case of transfer of the right in favor of another taxpayer, this must be indicated in the declaration, within the corresponding deduction, that the right to the deduction has been transferred to him and, where applicable, the NIF of the transferor.

Special rules for calculating the deduction when the right is transferred

When the transfer is carried out, for the purposes of calculating the deduction, the following special rules will apply:

  1. The amount of the deduction will not be prorated among them, but will be applied in full by the taxpayer in whose favor the deduction was granted.
  2. The months in which any of the taxpayers who were entitled to the deduction meet the requirements will be counted.
  3. The total contributions and fees to Social Security and Mutual Societies corresponding to all taxpayers who are entitled to the deduction will be taken into account jointly.
  4. Any amounts that have been received in advance will be considered to have been obtained by the taxpayer in whose favour the deduction has been assigned.