8.2.2.6. Maximum annual contributions and reduction limit

1. Annual contributions

   • 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 1,500 euros.

     This limit will be increased by 8,500 euros, provided that such increase comes from employer contributions, or from employee contributions to the same social security instrument for an amount equal to or less than the respective employer contribution.

     For these purposes, amounts contributed by the company that derive from a decision by the employee will be considered as contributions by the employee.

     The individual entrepreneur's own contributions to employment pension plans or to social welfare mutual funds of which he is, in turn, the promoter and, in addition, a participant or mutual member, as well as those made to company social welfare plans or collective dependency insurance of which, in turn, he is the policyholder and insured, will be considered as company contributions, for the purposes of calculating this limit.

   • In the case of collective dependency insurance taken out by companies to cover pension commitments, an additional limit of 5,000 euros per year is established for the premiums paid by the company.

2. Reduction limit

   As a joint maximum limit for the above reductions, the lowest of the following amounts shall apply:

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

   • 1,500 euros per year.

     This limit will be increased by 8,500 euros, provided that such increase comes from employer contributions, or from employee contributions to the same social security instrument for an amount equal to or less than the respective employer contribution.

     For these purposes, amounts contributed by the company that derive from a decision by the employee will be considered as contributions by the employee.

     The individual entrepreneur's own contributions to employment pension plans or to social welfare mutual funds, of which he is, in turn, a promoter and, in addition, a participant or mutual member, as well as those made to company social welfare plans or collective dependency insurance of which, in turn, he is the policyholder and insured, will be considered as company contributions, for the purposes of calculating this limit.

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

3. Request for reduction

   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.

   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.

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