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 in the cases and in the amounts indicated in the following point.

   • 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 in the following cases, in the amounts indicated:

     1. By 8,500 euros per year, 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 amounts resulting from the following table based on the annual amount of the employer contribution:

     Annual contribution amount	Maximum contribution of the worker
     Equal to or less than 500 euros.	The result of multiplying the business contribution by 2.5.
     Between 500.01 and 1,500 euros.	1,250 euros, plus the result of multiplying by 0.25 the difference between the business contribution and 500 euros.
     More than 1,500 euros.	The result of multiplying the business contribution by 1.

     However, in any case, multiplier 1 will be applied when the worker obtains total work income in the year exceeding 60,000 euros from the company making the contribution, for which purpose the company must notify the managing or insuring entity of the social security instrument that this circumstance does not apply.

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

     2. By 4,250 euros per year, provided that such increase comes from contributions to the sector pension plans provided for in letter a) of section 1 of article 67 of the consolidated text of the Law on the Regulation of Pension Plans and Funds, made by self-employed workers or freelancers who join said plans by reason of their activity; contributions to simplified occupational pension plans for self-employed workers or freelancers provided for in letter c) of section 1 of article 67 of the consolidated text of the Law on the Regulation of Pension Plans and Funds; or from the individual entrepreneur's or professional's own contributions to employment pension plans, of which he is the promoter and, in addition, a participant, or to Social Security Mutual Funds of which he is a member, as well as those made to company social security plans or collective dependency insurance of which, in turn, he is the policyholder and insured.

     In any case, the maximum amount of reduction by applying the increases provided for in numbers 1 and 2 above will be 8,500 euros per year.

     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.