Back to index
V4160-15 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

The taxpayer inquires about the tax treatment of amounts received following the dissolution and liquidation of their social welfare mutual fund. The DGT rules that these amounts are classified as employment income and explains how to apply transitional tax regimes.

The question raised

Issue 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 Law 35/2006. For contributions made prior to 1999, the regime of the second transitional provision applies, incorporating the portion exceeding non-deducted contributions (or 75% if they cannot be substantiated). For contributions made up to 2006, the 40% reduction may be applied if received as a lump sum, subject to the limits of the twelfth transitional provision. To determine the portion of contributions, the quotas paid and other attributable income must be considered based on said quotas.

Book your free first meeting