Practical case. Contributions to the pension plan and protected assets of a child with a disability

Mr. PJJ, widower, 58 years old, lives with his son Mr. FJS, 30 years old, declared incapable by court order and subject to extended parental authority, who has obtained a general tax base of 30,000 euros in 2023.

In 2023, pursuant to the provisions of Law 41/2003 of 18 November, he has established a protected estate in favour of his son, who has been proven to have a 65% mental disability. On the occasion of the constitution of the aforementioned protected heritage, Mr. PJJ has contributed 6,250 euros to the project free of charge. His four remaining children have also contributed 5,000 euros each to their brother's protected estate.

Also, Mr. PJJ has contributed 1,500 euros to a pension plan of the employment system promoted by the company in which he provides his services, with the employer's contributions imputed to him by the company in the year amounting to 2,500 euros.

Finally, Mr. PJJ has contributed 4,250 euros to a pension plan set up for his disabled son. She has also contributed 20,000 euros to the aforementioned pension plan on behalf of her disabled son and the income obtained by him.

Determine the general taxable base of the individual declarations of the disabled person and his father, corresponding to the fiscal year 2023, knowing that the total income from the work of the latter (Mr. PJJ) and the net work performance of Mr. PJJ, which coincides with its general tax base is 61,000 euros and 55,500 euros, respectively.

Solution:

Previous note: Regarding the declaration of incapacity of the child, as a consequence of Law 8/2021, of June 2 ( BOE of June 3), the judicial resolutions by which the extension or rehabilitation of parental authority was established will only be taken into account until a new judicial resolution is issued to replace it.

Furthermore, the references to extended or rehabilitated parental authority made in article 82 of the Personal Income Tax Law in relation to the family unit must be understood as being made to court decisions establishing representative guardianship for adult children with disabilities when this is exercised by the person or persons who would be entitled to parental authority if the child were a minor.

1. Individual declaration of the person with a disability.

General tax base: 30,000

Reduction for contributions to pension plans for people with disabilities:

• Contribution made: 20,000
• Maximum reduction limit: 24.250
• Applicable reduction: 20,000
• General taxable base (30,000 - 20,000) = 10,000

2. Individual statement of the father, Mr. PJJ:

General tax base: 55,500

2.1. Reduction for contributions to social security systems (pension plan of the employment system) .

Contributions and contributions for the year 2023 (1,500 contributed by him + 2,500 contributions from his company) = 4,000

Limit on the amount of contributions and maximum reducible contributions:

• Own contributions (within the general limit for contributions and business contributions of 1,500 euros) = 1,500

  Note: It should be noted that this general limit includes contributions from workers to both individual systems and to social security systems for employment, without the need in the latter case to be conditioned on the making of employer contributions.

• Business contributions (increase of 8,500 euros more) = 2,500

  Note: Please note that, as of January 1, 2023, employee contributions that exceed the general limit of 1,500 euros, when made to the social employment security system, are subject to employer contributions, the amount of such contributions, as well as the gross income received by the employee from the employer who makes such contributions in accordance with the table established in article 52.1.1 of the Tax Law. See in this chapter the section “ Limits and excess contributions ” within “Reductions for contributions and contributions to social security systems”.

• Total (1,500 + 2,500) = 4,000

Percentage reduction limit (30% s/49,000) = 14,700

Reduction applicable for contributions and contributions 2023: 4.000

General tax base remainder (55,500 – 4,000) = 51,500

2.2. Reduction for contributions to the pension plan of a disabled child.

Contribution made: 4.250

Maximum limit (24,250 – 20,000 which is the contribution of the disabled person to his/her plan) = 4,250

Reduction applicable ⁽¹⁾ = 4.250

General tax base remainder (51,500 – 4,250) = 47,250

Note⁽¹⁾ Since the contributions made by the disabled person themselves (20,000 euros) have priority in applying the reduction, the father may only apply the reduction for the excess up to 24,250 euros, which constitutes the maximum joint limit of reductions practicable by all the people making the contributions. Consequently, the reducible contribution amounts to 4,250 euros. ^(Back)

2.3. Reduction for contributions to protected assets of persons with disabilities.

Contribution made: 6.250

Maximum joint limit of contributors: 24.250

Reducible contribution proportional (24,250 ÷ 26,250) x 6,250 ⁽²⁾ = 5,773.81

General taxable base: (47,250 – 5,773.81) = 41,476.19