Tax treatment of benefits from the Banking Labor Mutual Fund (1967-1978)

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the taxation of benefits received by beneficiaries of the Banking Labor Mutual Fund. The focus of the matter lies in the tax treatment of those benefits derived from contributions made during a specific historical period.

What the DGT has ruled

The inquiry addresses the application of the second transitional provision of Law 35/2006 (LIRPF) to retirement or disability benefits from the Banking Labor Mutual Fund. The administration establishes that contributions made between January 1, 1967, and December 31, 1978, were not deductible under the legislation in force at that time.

Due to this lack of deductibility, the DGT determines that, following Supreme Court Ruling 707/2023, 75% of the benefits received under this concept must be included in the IRPF taxable base. This criterion is based on the need to equate the treatment of these benefits to other situations where contributions were not deductible.

What it means for you

This ruling directly affects individuals receiving benefits from the Banking Labor Mutual Fund who made contributions during the period between 1967 and 1978. If you are in this situation, you should take into account that the amount of the benefit will not be taxed in full, but rather 75% of it will be considered earned income for the calculation of your tax.

What you should do

Given the application of this ruling, it is necessary to verify whether the benefits received meet the aforementioned temporal requirements. Since the interpretation of the regulations and the application of the second transitional provision of Law 35/2006 depend on the nature of the contributions made, it is recommended to assess each particular case to ensure that the inclusion in the taxable base is carried out in accordance with current regulations and Supreme Court jurisprudence.