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Practical Income Manual 2020.

1. Contributions and contributions to pension plans

They can reduce the general tax base:

  • The contributions made by the participants, as well as the business contributions imputed as work performance in kind by the promoter of pension plans of the employment system. All of this, in the terms of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29 (BOE of December 13).

  • The contributions made by participants to the pension plans regulated in Directive ( EU ) 2016/2341 of the European Parliament and of the Council, of December 14, 2016, relating to the activities and supervision of employment pension funds (EPF), including contributions made by promoting companies, provided that the following requirements are met:

    1. That the contributions be taxed to the participant to whom the benefit is linked.
    2. That the right to receive the future benefit be irrevocably transmitted to the participant.
    3. That the ownership of the resources of which the contribution consists is transmitted to the participant.
    4. That the contingencies covered are those provided for in article 8.6 of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29.

    Precision: Please note that Directive 2003/41/ EC , of the European Parliament and of the Council, of June 3, 2003, relating to the activities and supervision of occupational pension funds, to referred to in article 51 of the Personal Income Tax Law was repealed by article 65 of Directive ( EU ) 2016/2341 of the European Parliament and of the Council, of December 14, 2016, relating to the activities and supervision of occupational pension funds (EPF) was repealed as of January 13, 2019 and that references to Directive 2003/41/EC will be understood to be made to the aforementioned Directive (EU) 2016/ 2341.