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Form 100. Personal Income Tax Declaration 2021

8.4.2.6. Maximum annual contributions and reduction limit

Maximum annual contributions with the right to reduction

  • On a general basis .

    The set of maximum annual contributions that may give the right to reduce the tax base, including, where appropriate, those that have been charged by the promoters, may not exceed 2,000 euros.

    This limit will be increased by 8,000 euros, provided that such increase comes from business contributions.

    The own contributions that the individual entrepreneur makes to employment pension plans of which, in turn, he is a promoter and participant, will be considered as business contributions, for the purposes of calculating this limit .

  • In the case of collective dependency insurance, the premiums paid by the company under these insurance contracts and charged to the worker will have their own and independent reduction limit of 5,000 euros per year.

Reduction limit 

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

  • 30% of the sum of the net income from work and economic activities received individually in the year.

  • 2,000 euros per year.

    This limit will be increased by 8,000 euros, provided that such increase comes from business contributions.

    The contributions that the individual entrepreneur makes to employment pension plans or social security mutual societies, of which, in turn, he is a promoter and participant or mutual member, as well as those made to corporate social security plans or collective insurance policies. dependence on those who, in turn, are the policyholder and insured, will be considered as business contributions, for the purposes of computing this limit.

    And, additionally, 5,000 euros per year for the collective long-term care insurance premiums paid by the company.

The imputation of the excess will be carried out respecting the limits established in the Tax Law.

For these purposes, when in the tax period in which said excess occurs, contributions from the taxpayer and contributions imputed by the promoter occur, the determination of the part of the excess that corresponds to both will be carried out in proportion to the amounts of the respective contributions. and contributions.

When contributions made in the year coincide with contributions from previous years that could not be reduced due to insufficient tax base or exceeding the percentage limit, the contributions corresponding to previous years will be understood to be reduced, first of all.

Reduction request 

The participants, mutualists or insured persons may request that the amounts contributed, including, where applicable, the contributions of the promoter that had been attributed to them, that could not have been subject to a reduction in the tax base due to its insufficiency or due to application of the percentage limit, they are in the following five years.

This rule will not apply to excesses over the contribution limits established by law.

The request must be made in the Personal Income Tax declaration corresponding to the year in which the contributions made could not have been subject to reduction.