FAQs

The second transitional provision (DT 2) of the LIRPF offers the possibility of reducing the amount to be included as work income in the income tax return of each fiscal year when retirement or disability pensions are received by those members whose contributions could not at the time be subject to reduction or decrease in the tax base. In this way, double taxation of these contributions is avoided.

DT 2 is applied in accordance with the provisions of the various rulings of the Supreme Court, the latest dated February 28, 2023 and January 10, 2024.

A refund will be required if, after applying DT 2, the tax rate is lower than the amounts previously paid for filing a previous declaration or for the withholdings incurred.

In order to apply the reduction provided for in DT 2 it is necessary to have made contributions to mutual societies, in any case on a date prior to January 1999, and that these contributions could not have been subject to reduction or decrease in the tax base of the tax in accordance with the legislation in force at any given time.

The reduction to be applied varies depending on the date on which the contributions were made and the type of mutual fund to which they were made.

The application of DT 2 is not applicable for those who receive pensions:

• satisfied by Passive Classes to public officials when these have only been included throughout their working life in the Passive Classes regime, as it is not a mutual fund.

• obtained from contributions to self-employed workers' mutual funds since the contributions were already deductible at the time. In this way, there is no double taxation on the pension now obtained.

• widow's pension, not being included in DT 2, as it does not derive from contributions from the recipient of this pension.

• non-contributory, as they are not included in DT 2, since they do not come from previous contributions.

The pensions that may be eligible for reduction are as follows:

1. Satisfied by the INSS or the Social Institute of the Navy.

   The reduction may be applied:

   • When contributions were made to labor mutual funds

     • Prior to 01/01/1967 : The portion of the retirement benefit corresponding to contributions made prior to 01/01/1967 will be reduced to 100%. That is, this part of the pension will not be taxed.

     • Between 01/01/1967 and 31/12/1978: The portion of the retirement benefit corresponding to contributions made during that period will be reduced by 25%. That is, only 75% of this part of the pension will be taxed.

   • When contributions were made to substitute mutual funds of the Social Security management entities prior to 01/01/1979: The portion of the retirement benefit corresponding to contributions made during that period will be reduced by 25%. That is, only 75% of this part of the pension will be taxed.

2. Supplementary pensions

   • General assumption

     The pensions complementary to the Social Security pension or Passive Classes, which derive from contributions to mutual societies, are currently paid by pension plans or by the mutual societies to which these contributions were made.

     In these cases, the part of the benefit corresponding to contributions made before 1 January 1995 will be reduced by 25%. That is, only 75% of this part of the pension will be taxed.

   • Satisfied by special funds from public entities

     These pensions can be obtained by some public officials as a supplement to their main pension.

     Regardless of whether your main pension is entitled to the application of DT 2 or not, these pension supplements may give you the right to apply DT 2 if the mutual societies to which the contributions were made have been integrated into the different special funds of the INSS, Muface, Mugeju and Isfas, which are the ones that currently pay this supplement.

     This benefit is applicable to these retirement pension supplements and the taxation of the pension will be reduced when it corresponds to contributions made to mutual funds.

     Therefore:

     • The "supplement" for retirement or disability pensions paid by the special fund of the INSS is subject to a 25% reduction for the part of the pension derived from contributions made to mutual societies until 01/07/1987 (date of integration into the special fund) . That is, only 75% of this part of the pension will be taxed.

     • The "supplement" of retirement or disability pension paid by Muface, Mugeju and Isfas is subject to a 25% reduction for the part of the pension derived from contributions made up to the date of integration of each of the mutual societies into the special fund, or up to 12/31/1978 if the integration date was earlier. That is, only 75% of this part of the pension will be taxed.

Yes. Among others:

Certain pensions paid by passive classes

Civil servants who have only been included throughout their working life in the Passive Classes regime will not have the right to the application of DT 2 on the pension received from Passive Classes (since Passive Classes is not a mutual fund).

However, if made contributions to a mutual fund they may apply DT 2 to the part of the pension that corresponds to said contributions under the terms indicated in the previous questions.

For example, a retiree who receives a civil servant pension for having worked as a public servant, but who for a few years contributed to a mutual fund because he worked for a private company, could apply DT 2.

Retirement pension that is collected simultaneously with the widow's pension

A widowed person can apply DT 2 for his or her own retirement or disability pension under the terms indicated in the previous questions. Only the widow's pension is excluded.

• Through the electronic form that the Tax Agency publishes on the Electronic Office, the application of DT 2 can be requested for the period 2020 to 2023. In any case, this is a voluntary procedure to speed up the process.

  To submit it, only is required to have a Reference number, Cl@ve or electronic certificate (including DNI-e). The form can also be submitted on behalf of a third party, by proxy or through social collaboration. Heirs may also request the application of DT 2 through the form.

  After identification, the only information that must be included is the bank account of which the applicant is the holder.

• In the case of applications referring to 2023 , in addition to submitting form it is necessary in all cases to submit the 2023 Income Tax Return itself.

For Income 2023 , if the AEAT has all the information, the reduction will already appear in the tax data with the concept ( “Adjustment for Mutual Societies - DT2 LIRPF”) , and the adjustment will be automatically applied in the declaration.

This calculation will also be carried out for taxpayers who have already received a favorable resolution on rectification requests from previous years, so that, in these cases, it will not be necessary for them to submit the form published on the AEAT Electronic Office.

In cases where the AEAT does not have sufficient information, it will not be able to provide the calculation in the tax data, but to request the adjustment, you must submit the 2023 Income Tax return along with the form. If the form has been submitted previously, it will not be necessary to submit it again, as it will be used to rectify the 2023 Income Tax return that you submit.

No documentation will need to be provided at the outset.

The AEAT is working in a coordinated manner with Social Security and other organisations to gather the necessary information to process refund requests for mutual society members as quickly as possible and with the least inconvenience for citizens.

However, once the application has been submitted, the AEAT may request documentation from the applicant in the event that the AEAT does not have all the information necessary to process the application.

Yes. By submitting the form, you also authorize the AEAT to prepare and submit on your behalf the self-assessments for the periods 2020 to 2022 in the individual modality based on the information available to the AEAT.

However, sending the form will not entail filing the declaration if the result of this filing involves an amount to be paid or a loss to a third party – for example, if the filing would result in the loss of the minimum for ascendants.

For deceased applicants, the form may be submitted when the taxpayer died between 2020 and the date of submission of form .

The heirs will not be able to use the electronic certificate or the Cl@ve of the deceased person, since both are disabled upon death.

Application form can be submitted using the deceased's reference number . For deceased persons from 2021 until now, the reference number can be obtained online through the following link: obtaining the reference number

In any case, if the successor is registered in the register of successors , he/she may submit the pensioner form using this representation. You can register in the Registry of Successors through the following link: Inheritance register

The application form for the application of DT 2 can be submitted from its publication on the Electronic Office and will be applicable for those IRPF years that are not prescribed on the date of submission.

Although the applicant for rectification can simply wait for the resolution, it is also possible to submit the form.

In any case, submission of the form is voluntary.

By Bank transfer.

For this reason, it is necessary to indicate a bank account of which the applicant is the holder in order to make the refund payment.

When submitting the form, a submission receipt will be generated which will include information about the application submitted if there are any circumstances that should be brought to the attention of the applicant at that time.

Subsequently, if the calculations made by the Tax Agency:

• The result is an amount to be returned : This amount will be paid into the indicated bank account.

• There is no amount to be returned : The applicant will receive a communication indicating this circumstance and the reason. If the applicant has not had any withholdings applied, or they have already been returned when the declaration was filed, in general terms there will no longer be any taxation to reduce by applying DT 2.

• It is not possible to calculate the reduction to be applied with the information available : The AEAT will request additional information to perform this calculation.

Taxpayers must request the application of DT 2 from the corresponding regional institutions for those years in which they had their tax domicile in the Basque Country or Navarre.

Through section "Consult submitted forms" the Electronic Headquarters of the Tax Agency, after identifying yourself with a reference number, Cl@ve, certificate or DNI-e

By submitting a written by Registry indicating the receipt or reference number of the form and the information to be modified (telephone number and/or IBAN of the bank account of which the applicant is the holder)

Yes.

• If the processing of the form has resulted in the filing of an IRPF declaration, you may submit a application to rectify said declaration . 

• If the processing of the form has resulted in the correction of an IRPF declaration previously submitted by you, you may file appeal for reconsideration or economic administrative claim against the Administration's decision:

  • Appeal for reconsideration, within a period of one month and on an optional basis, before the office from which the administrative act to be appealed originates, stating that no economic-administrative claim has been filed against it.

  • Economic-administrative claim, within one month from the day following notification of the contested act or from the day in which the procedure or prior appeal for reconsideration may be understood to have been rejected. It will be addressed to the administrative body that issued the challengeable act.

Yes.

• If the amount paid in the personal income tax return is returned, the interest will be calculated from the date on which the payment was made.

• If withholdings or other payments on account that have been deducted in the personal income tax return are returned, interest will only be paid if more than 6 months have passed since the application form was submitted.

If the amount paid in the personal income tax return is returned, the interest will be calculated from the date on which the payment was made.

If withholdings or other payments on account that were deducted in the personal income tax return are returned, interest will be paid if more than 6 months have passed since the rectification request was submitted.

Yes.

When dismissal agreement has been received due to lack of evidence of the first request for rectification of self-assessment submitted to apply DT 2, its application may be requested again by submitting the rectification form or request for said fiscal year.

No.

When agreement has been received estimating in full or in part the first request for rectification of self-assessment submitted to apply DT 2, its application may not be requested again.