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V2004-22 20 September 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · reducción en base imponible

The limit for the reduction for contributions to individual pension plans is 1,500 euros per year

A taxpayer asks whether contributions to an individual pension plan, funded by company compensation, may benefit from the increased limit of 8,500 euros. The DGT responds that, as it is an individual plan, the increase cannot be applied and the limit is 1,500 euros.

The question raised

Question posed: Application of the maximum reduction limit in the taxable base of the Personal Income Tax for contributions and payments to social security systems.

The DGT's ruling

The general limit of 1,500 euros per year includes contributions to both individual and occupational systems. The 8,500 euro increase is an additional limit for employer contributions and employee contributions to occupational systems. Since the amounts are allocated to an individual pension plan, they are not considered employer contributions and the increased limit does not apply, limiting the reduction to 1,500 euros per year.

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