Table: Reductions in tax base applicable for contributions and contributions to social security systems
A. Employment system pension plans (including simplified ones), Social Security Plans and Social Security Mutual Funds
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Contributions made by the company
Situations Qualification for the purposes of applying limits (Art. 52 Law PIT) Tax treatment for the worker Limits 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 inES/PIT(EDN/EDS)
1,500 + 8,500 Flexible compensation (worker decides): Limit of 30% of the total annual remuneration for all remuneration in kind (art. 26.1 of the ET ) Worker's contribution Compensation in kind without payment on account + Reduction in the Taxable Base 1,500
1. Workers with RNT = or > 60,000 euros
Result of multiplying business contributions by 1. Maximum 4,250
2. Workers with RNT < 60,000 euros
- Contribution = or < 500 euros. The result of multiplying the business contribution by 2.5. Maximum 1,250
- Contribution between 500.01 and 1,500 euros = 1,250 + 0.25 x ( CE - 500 euros). Maximum 1,500
- Contribution between + 1,500 euros = CE x 1. Maximum 4,250
Payment mediation (by order and account of the worker) Worker's contribution (Monetary compensation + withholding) + Reduction in the Taxable Base (*) Abbreviations used in the table:
- ES: Corporation Tax
- Personal Income Tax: Personal income tax
- EDN/EDS: direct estimation method for determining the net income of economic activities in personal income tax. Normal mode and simplified mode
- RNT: Net labor income
- EC: Corporate contribution
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Contributions made by the worker
Situations Qualification for the purposes of applying limits (Art. 52 Law PIT) Tax treatment for the worker Limits Direct payment - Voluntary contribution Worker's contribution Reduction in the tax base 1,500
1. Workers with RNT = or > 60,000 euros
Result of multiplying business contributions by 1. Maximum 4,250
2. Workers with RNT < 60,000 euros
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Contribution = or < 500 euros. The result of multiplying the business contribution by 2.5. Maximum 1,250
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Contribution between 500.01 and 1,500 euros = 1,250 + 0.25 x ( CE - 500 euros). Maximum 1,500
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Contribution between + 1,500 euros = CE x 1. Maximum 4,250
(*) Abbreviations used in the table:
- RNT: Net labor income
- EC: Corporate contribution
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B. Pension Plans of the associated system and Pension Plans of the individual system and Insured Provident Plan
| Contributor | Situations | Qualification for the purposes of applying limits (Art. 52 Law PIT) | Tax treatment for the worker | Limits |
|---|---|---|---|---|
| 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 | |
| Self-employed or self-employed worker/individual entrepreneur or professional | Contributions made by the self-employed businessman or professional himself for him | Corporate contribution | Reduction in the tax base | 1,500 + 4,250 |
C. Simplified employment pension plans provided for in article 67 TRPFP and Social Security Mutual Funds
| Contributor | Situations | Qualification for the purposes of applying limits (Art. 52 Law PIT) | Tax treatment for the worker | Limits |
|---|---|---|---|---|
| Self-employed or self-employed worker/individual entrepreneur or professional | Contributions made by the self-employed businessman or professional himself for him | Corporate contribution | Reduction in the tax base | 1,500 + 4,250 |