Retirees from mutual societies can now request a refund of the overtaxed personal income tax from today

Potential beneficiaries of this measure can fill out a form on the Agency's website that will allow them to manage their requests without having to provide additional information, informs the Tax Agency,

In this way, pensioners of mutual societies will be able to recover the excess tax paid in the period 2019-2023, although, the Agency points out, in most cases the amounts corresponding to 2023 will appear in the draft of the Income Tax return. that year, which can be presented from April 3.

According to the Supreme Court ruling, retirees who receive retirement or disability pensions from the former mutual societies can reduce their work income in the Income Tax return, with the aim of avoiding double taxation in cases in which the contributions to the mutualities could not be deducted at the time.

The second transitional provision (DT 2) of the Personal Income Tax Law offers the possibility of reducing the amount to be included as work income in the income tax return for each financial year when retirement or disability pensions are received by those mutual members whose contributions could not be be subject to a reduction or reduction in the tax base at the time. In this way, double taxation for these contributions is avoided.

To do this, it is necessary to have made contributions to mutual societies, in any case on a date prior to January 1, 1999, which have not been reduced or reduced in the tax base of the tax in accordance with the legislation in force at any given time.

The reduction to be applied varies depending on the date on which the contributions were made and the type of mutual fund to which they were made.

The pensions that may be entitled to reduction are the following:

Satisfied by the INSS or the Social Institute of the Navy.

The reduction may be applied:

Supplementary pensions

Pensions complementary to the Social Security pension or Passive Classes, which derive from contributions to mutual societies, are currently paid by pension plans or by the mutual societies to which said contributions were made.

In these cases, the part of the benefit that corresponds to contributions made prior to January 1, 1995, will be reduced by 25%: only 75% of this part of the pension will be taxed.

Satisfied by special funds from public entities

These pensions can be obtained by some officials as a complement to their main pension.

Regardless of whether or not your main pension is entitled to the application of the 2nd DT, these pension supplements can give the right to the application of the 2nd DT in the event that the mutual societies to which the contributions were made had integrated into the different special funds of the INSS, Muface, Mugeju and Isfas, which are the ones who now pay this supplement.

Thus, explains the Treasury, the 25% reduction for the part of the pension derived from contributions made to mutual societies until 01/07 is applicable to the "complement" of retirement or disability pension paid by the INSS special fund. /1987 (date of integration into the special fund). That is, only 75% of this part of the pension will be taxed.

The 25% reduction for the part of the pension derived from contributions made up to the date of integration of each of the mutual societies in the special fund, or until 12/31/1978 if the integration date was earlier. That is, only 75% of this part of the pension will be taxed.

A widow can apply the 2nd DT for her own retirement or disability pension in the terms indicated in the previous questions. Only the widow's pension is excluded.

Not applicable for those who receive pensions: