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V0358-19 20 February 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Social welfare mutual society benefits taxed as income from movable capital if contributions did not reduce taxable income

A lawyer consulted whether life annuities from a professional pension plan provided by a mutual society should be taxed as income from movable capital. The Directorate General for Taxes (DGT) ruled that if the contributions were unable to reduce the taxpayer's personal income tax (IRPF) base, the amounts received are classified as income from movable capital.

The question raised

Whether the benefit to be received must be taxed as income from movable capital.

The DGT's ruling

Benefits from insurance contracts with social welfare mutual societies are considered income from employment if the contributions were deductible expenses or reduced the taxable base. If the total amount of the contributions could not be subject to a reduction or decrease in the taxable base, the amounts received shall be considered income from movable capital pursuant to Article 25.3 of Law 35/2006.

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