TAX REFUND TO MUTUALISTS
By judgement 255/2023 of 28 February, the Supreme Court granted pensioners who had contributed to any mutual society, the right to a 100% tax reduction for contributions made up to 31 December 1966 and a 25% reduction for contributions made between 1st January 1967 and 31st December 1978.
This tax reduction should be applied to the amount of the pension of mutual pensioners proportionally to the periods they where mutualists, regarding their entire working life. That is to say, if the period they contributed to the mutual employment insurance scheme is 15% of their working life, the tax reduction will be applied to that 15% of their working life.
This judgment on mutual funds and IRPF recognises, on one hand, the right of pensioners to have their excess tax refunded during the tax periods that have not yet prescribed (the last four) and, on the other hand, that the tax reduction is applied from now on in their future tax returns.
Affected pensioners can only claim to the Spanish Tax Agency, the refund for years 2019, 2020, 2021 and 2022.
From 2023 onwards, the adjustment should be applied automatically in the declaration, in most cases.
