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V4154-15 30 December 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · mutualidad de previsión social

Settlement amounts from a social welfare mutual fund are taxed as employment income

A taxpayer queried the tax treatment of amounts received following the dissolution and liquidation of their social welfare mutual fund. The Directorate General for Taxes (DGT) ruled that these sums are classified as employment income and explained how to apply transitional tax regimes.

The question raised

Tax treatment corresponding to the amounts to be received as a consequence of the dissolution and liquidation of the social welfare mutual fund.

The DGT's ruling

The amounts received from the liquidation of a social welfare mutual fund constitute earned income pursuant to Article 17.2.a).4 of Law 35/2006. For contributions made until December 31, 1998, the regime of the second transitional provision applies, incorporating 75% if the non-reduced contributions cannot be substantiated. For contributions made until December 31, 2006, the 40% reduction may be applied if received as a lump sum and if two years have elapsed since the first contribution. The portion of the liquidation corresponding to the mutual fund's own income must be attributed to the member based on their paid contributions.

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