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V0816-25 16 May 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Social mutualities' benefits taxed as income from work

A lawyer asks how her pension from a mutuality will be taxed. The DGT clarifies that the amount exceeding non-deductible or unreduced contributions will be taxed as income from work.

The question raised

Taxation of the benefit under Personal Income Tax.

The DGT's ruling

The benefit provided by a social welfare mutual fund is included in the general tax base as income from employment to the extent that it exceeds the contributions that could not be subject to reduction or deduction. For contributions made prior to 1999, if the amount of the non-reduced contributions cannot be proven, 75 percent of the benefit shall be included. If the benefit is received as a lump sum, a 40 percent reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that the terms and requirements of the twelfth transitional provision are met.

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