8.4.2.6. Maximum annual contributions and reduction limit

Maximum annual contributions with right to reduction (art. 51.6 Law)

• In general .

  The set of maximum annual contributions that may give the right to reduce the tax base, including, where applicable, those that have been imputed by the promoters, may not exceed 8,000 euros.

  Note: This limit will be applied jointly to the contributions made by the participants and those attributed to them by the promoters.

Reduction limit (art. 52 Law)

As a joint maximum limit for the above reductions, the following will apply: the smallest of the following amounts:

• In general:

  1. 30% of the sum of net earnings from work and economic activities received individually during the fiscal year.

  2. 8,000 euros per year.

     And, additionally, 5,000 euros per year for the premiums for collective dependency insurance paid by the company.

Note: The total reductions made by all persons who pay premiums for dependency insurance on behalf of the same taxpayer, including those of the taxpayer himself, may not exceed 8,000 euros per year.

Request for reduction (art. 52.2 Law)

Participants, mutual members or insured persons may request that the amounts contributed, including, where applicable, the promoter's contributions that have been imputed to them, which could not be subject to reduction in the tax base due to insufficiency of the same or due to application of the percentage limit, be reduced in the following five years. This rule will not apply to the excess over the contribution limits established by law (art. 51.6 Law).

The application must be made in the Personal Income Tax return for the year in which the contributions made could not have been subject to reduction.