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Form 100. 2019 Personal Income Tax return Maximum annual contributions and reduction limit

Maximum annual contributions with the right to reduction (Article 51,6 of the Act)

  • In general.

    The maximum annual contributions that may give rise to the right to reduce the taxable amount, including, where applicable, those that have been attributed by the developers, may not exceed 8,000 euros.

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

Reduction limit (art. 52 Act)

As a maximum joint limit for the previous reductions, the following will apply: The lesser 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, in addition, €5,000 per year for premiums for group dependency insurance policies paid by the company.

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

Request for reduction (Article 52,2 of the Act)

Participants, mutual society members or insured persons may request that the amounts contributed, including, where applicable, the contributions of the promoter that have been made to them it was allocated, which could not be reduced in the gross tax base due to insufficient or applying the percentage limit, regardless of the following five years. This rule shall not apply to excess over the limits of contributions established by law (art.51.6 Act).

The request must be made in the Personal Income Tax return for the year in which the contributions made could not have been reduced.