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Practical Manual for Companies 2022.

Deduction for business contributions to corporate social security systems (art. 38 ter LIS)

With effect for tax periods beginning on or after July 2, 2022, a new deduction in the full quota of 10 percent of the following business contributions imputed in favor of workers is incorporated into article 38 ter of the LIS :

  • Imputed business contributions in favor of workers with gross annual remuneration of less than 27,000 euros , provided that such contributions are made to employment pension plans, corporate social security plans, pensions regulated in Directive ( EU ) 2016/2341 of the European Parliament and of the Council, of December 14, 2016, of which the taxpayer is the promoter.

  • In the case of workers with gross annual salaries equal to or greater than 27,000 euros , the deduction will be applied to the proportional part of the business contributions that correspond to the gross annual salary indicated in the previous point.

Example:

Entity "A" makes contributions to an employment pension plan of which it is the promoter for an amount of 150 euros per month, which it allocates in favor of each of its employees. Calculate the amount of the deduction of article 38 ter of the LIS that said entity can apply in the following cases:

  1. Worker with a gross annual salary of 20,000 euros

    Annual contribution of "A" to the occupational pension plan: 1,800 euros

    Amount of the deduction (art. 38 ter LIS): 1,800 x 10% = 180 euros

  2. Worker with a gross annual salary of 30,000 euros

    Annual contribution of "A" to the occupational pension plan: 1,800 euros

    Amount of the deduction (art. 38 ter LIS): (27,000/30,000) x 1,800 x 10% = 162 euros