Table: Reductions in tax base applicable for contributions and contributions to social security systems
| Social security instrument | Contributor | Situations | Qualification for the purposes of applying limits (Art. 52) | Tax treatment for the worker | Limits |
|---|---|---|---|---|---|
| PP Employment Service/PPSE/MPS (*) | The company | The company decides | Corporate contribution |
Compensation in kind without payment on account + Reduction in the Taxable Base Note: For the company it is a deductible expense in IS / IRPF ( EDN / EDS ) |
1,500 + 8,500 |
| Flexible compensation (worker decides): Limit of 30% of annual gross remuneration | Worker's contribution | Compensation in kind without payment on account + Reduction in the Taxable Base |
1,500 + 4,250 (*) maximum amount of 4,250 which is within the additional limit of 8,500 since for its application it is required that the company has made business contributions of at least the same amount as the contribution made by the worker. |
||
| Payment mediation (by order and account of the worker) | Worker's contribution | (Monetary compensation + withholding) + Reduction in the Taxable Base | |||
| The worker | Direct payment - Voluntary contribution | Worker's contribution | Reduction in the tax base | ||
| Individual PP/PPA (**) | The company | The worker chooses the social security product to contribute to (the company acts as a simple mediator) | Worker's contribution | (Monetary compensation + withholding) + Reduction in the Taxable Base | 1,500 |
| The worker | The worker chooses the social security product to which he contributes. | Worker's contribution | Reduction in the tax base |
(*) The abbreviations correspond to the following social security systems
- PP S. of Employment: Pension Plans of the Employment System.
- PES: Corporate Social Security Plans.
- MPS: Social Security Mutual Funds.
(**) The abbreviations correspond to the following social security systems:
- PP individual: Pension Plans of the associated system and Pension Plans of the individual system.
- PPA: Insured Pension Plan.