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V0064-21 22 January 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · mutualidades de previsión social

Social welfare mutual society benefits taxed as employment income if contributions were deductible or subject to reduction

A query was raised regarding whether benefits from a social welfare mutual society should be classified as employment income or income from movable capital. The DGT ruled that the classification depends on the tax treatment applied to the contributions made.

The question raised

Whether the receipt of this benefit constitutes income from employment or income from movable capital.

The DGT's ruling

If the contributions to the mutual society were deductible expenses or were subject to a reduction in the taxable base, the benefit shall be taxed as income from employment. Conversely, if none of the contributions were subject to a reduction or diminution in the taxable base, the benefit shall be considered income from movable capital. In the case of retirement or disability benefits, the amount exceeding the contributions that were not subject to reduction or diminution shall be integrated as income from employment.

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