In anticipation of an avalanche of requests from retired mutualists, the Treasury launched a form in March to request the refund of amounts overpaid in personal income tax by this group.
The measure was the response of the Tax Agency to facilitate the procedures for mutual members after Supreme Court ruling 255/2023 determined that retired mutual members who contributed to Mutualidad Laboral de Banca between 1867 and 1978 were paying more taxes for years in their income tax return for their retirement pension.
The Supreme Court has overturned the Treasury’s criteria for bank mutualists and extended the possibility of applying this interpretation to the rest of mutual societies. In short, a large number of retired mutualists can now claim from the Treasury the payment of undue amounts in personal income tax.
What pensions and mutual funds cannot be claimed?
The sentence of Supreme Court The Spanish Social Security Institute estimates that members paid 100% of their pensions when they should have paid 75% as a reduction that was applied to Social Security contributions was not applied. Now, they can claim the 25% they overpaid as the second transitional provision of the Personal Income Tax Law regulating the transitional regime applicable to social security mutual societies was not applied.
However, Not all members can claim Nor does the ruling affect all pensions.
The key to knowing which pensions are excluded is in the second transitional provision of the Personal Income Tax Law, which is what the Supreme Court based its decision on.
This provision does not apply to pensions for the State’s passive classes, which are those paid to State officials and workers who have chosen to pay contributions under this scheme and not through a mutual fund.
It also does not apply to the pensions for contributions to workers’ mutual fundswhere the transitional provision does not apply because they could already be deducted at the time, nor to mutual funds for self-employed workers.
In addition, widow’s pensions and non-contributory pensions are also excluded.
How much can you claim?
The claim for mutual members can only be made for the last four fiscal years, which are the only ones that have not yet expired. That is, a claim can still be made for income tax for 2022, 2021, 2020 and 2019.
This makes the amount to be claimed amounts to around 4,000 euros in most cases.
The amount to be returned It will be 25% of the pension for which taxes were paid and which comes from your contributions to the mutual fund.
So you understand how it is calculate the returnLet’s take an example with a pension of 18,000 euros, which is close to the national average.
In that case, for a member with 40 years of contributions and who made contributions to the mutual insurance company for 11 years between 1967 and 1978, these contributions would represent 27.5% of his total professional career. This is equivalent to 4,950 euros of the pension he receives.
Of those 4,950 euros, there is 25% that should not have been added to the personal income tax, which is equivalent to 1,237.5 euros. That is, instead of paying taxes on 18,000 euros, you should have paid taxes on 16,762.5 euros. This would make the income tax result lower and is the amount that the Treasury should return together with the corresponding late payment interest.
For claim a refundYou only have to fill out the Treasury form so that it includes the data and then make a correction to the self-assessment to the Treasury through Renta Web.
Source: www.lainformacion.com
