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V4157-15 30 December 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · mutualidad de previsión social

Payments from the liquidation of 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 DGT ruled that these payments are classified as employment income and explains how to apply the 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 society.

The DGT's ruling

Benefits from social welfare mutual societies are considered income from employment pursuant to Article 17.2.a).4 of the Personal Income Tax Law (LIRPF). 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 two years have elapsed since the first contribution, subject to the temporal limits of the twelfth transitional provision.

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