Taxation of 75% of the Banking Labor Mutual Fund benefits

The Directorate General of Taxes (DGT) has issued a relevant ruling for beneficiaries of the Banking Labor Mutual Fund (Mutualidad Laboral de Banca). The inquiry analyzes how retirement benefits must be taxed when they derive from contributions made during a specific historical period, directly affecting the IRPF taxable base of taxpayers.

What the DGT has resolved

The administration has determined that retirement benefits originating from contributions made to the Banking Labor Mutual Fund between January 1, 1967, and December 31, 1978, must be included in the taxable base as employment income.

The basis for this decision lies in the fact that such contributions were not deductible under the legislation in force at that time. For this reason, the provisions of the Second Transitional Provision of Law 35/2006 (LIRPF) apply. The technical result is that the taxpayer must include 75% of the amount of the benefits received in their income tax return.

What it means for you

If you are a beneficiary of a benefit from the Banking Labor Mutual Fund and your contributions were made within the time range between 1967 and 1978, your tax burden will increase. It does not involve the entirety of the benefit, but rather a partial inclusion of 75% of it as employment income in your IRPF taxable base.

This ruling underscores the importance of correctly identifying the origin and nature of contributions made in previous decades to avoid errors in the tax settlement.

What you should do

It is necessary to verify the history of contributions to the Banking Labor Mutual Fund to determine if you fall within the period affected by this rule. Since the application of the Second Transitional Provision of the LIRPF depends strictly on the dates of the contributions and their original tax treatment, it is recommended to assess your particular situation to ensure that the inclusion of the income is carried out in accordance with current regulations.