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V0524-24 9 April 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · mutualidades de previsión social

Contributions to social security mutual funds acting as an alternative to RETA may be deductible as expenses within certain limits

A self-employed professional has enquired whether contributions to a social security mutual fund are deductible as a business expense and whether any excess can reduce their taxable base. The Directorate General for Taxes (DGT) has ruled that these are deductible up to the limit of the maximum RETA contribution for common contingencies, and that any excess may reduce the taxable base subject to statutory limits.

The question raised

Possibility of deducting contributions made to said mutual society as an expense of the economic activity. If so, the possibility of applying a reduction to the taxable base for the excess of non-deductible contributions.

The DGT's ruling

Contributions to social welfare mutual societies for professionals not integrated into the RETA are deductible expenses to the extent that they cover contingencies covered by said regime, within the limit of the maximum contribution for common contingencies established for each fiscal year. Amounts exceeding said limit may be subject to a reduction in the personal income tax (IRPF) taxable base, provided they cover the contingencies provided for by law and respect the reduction limits set forth in Articles 50 and 52 of the LIRPF.

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