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A worker residing in common territory has enquired whether they can benefit from tax incentives for voluntary contributions to a Voluntary Social Welfare Entity (EPSV) in the Basque Country. The Directorate General for Taxes (DGT) has ruled that while they cannot apply the tax benefits offered by the Provincial Councils due to their residency, they are entitled to the reductions provided under state regulations for social welfare mutual funds.
The ruling clarifies the distinction between regional tax benefits in the Basque Country and state-level tax reductions for social welfare mutual funds, ensuring taxpayers in common territory can still access national tax relief for voluntary contributions.
The tax team reviews your specific situation.
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