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V0381-20 19 February 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · mutualidades de previsión social

Contributions to mutual societies as an alternative to RETA may be deductible expenses or reductions in taxable income

A lawyer enquired whether contributions to the General Mutual Society of the Legal Profession were deductible as an expense of their economic activity. The DGT ruled that they are deductible as an expense up to the limit of the maximum contribution for common contingencies under the RETA, and any excess may qualify as a reduction in taxable income subject to certain requirements.

The question raised

1. Possibility of deducting contributions made to the mutual society as an expense of the economic activity.

The DGT's ruling

Contributions to social welfare mutual societies acting as an alternative to the RETA are deductible expenses of the activity to the extent that they cover contingencies covered by the Social Security, subject to the limit of the maximum contribution for common contingencies under the RETA. Amounts exceeding said limit may be subject to a reduction in the taxable base if they meet the requirements of Article 51.2.a) of the LIRPF. Benefits derived from these contracts shall be taxed as employment income to the extent that they exceed the contributions that could not be subject to reduction or deduction.

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