Tax advisor: 75% of retirement or disability benefits received from the Bank Mutual Insurance Fund must be included in the tax base of the IRPF.

The Supreme Court rules: retirees from the banking sector who began working before 1979 may claim from the Treasury a portion of their pension that should not have been taxed on IRPF statements.

The average amount of refund is about 650 euros per fiscal year, and the retiree can benefit from this refund from the year of the claim. This reform will continue in the coming years.

Now, those belonging to the sector between 1967 and 1978 and who suffered the criterion on contributions made to the mutual society, should be taxed, in principle, only 75%. The longer the employee’s time has elapsed before 1979 in the workforce of the bank, the greater the non-taxable pension portion of the IRPF.

Judgment of the Chamber

Disp. trans Second Law 35/2006 assumes that retirement and invalidity benefits arising from insurance contracts concluded with mutual benefit societies, whose contributions were made before 1 January 1999, have been at least partially reduced in the taxable amount, they must be included in the taxable amount of tax on labour income. It adds that integration shall take place in so far as the amount collected exceeds the contributions made to the mutual society which could not be reduced or reduced in the tax base in accordance with the legislation in force at the time and, have therefore been previously taxed.

The Chamber considers that the contributions/contributions made to the Mutual Insurance Society of Banking from 1 January 1967 until 31 December 1978, whatever their legal nature, were not subject to deduction in the IRPF tax base in accordance with the legislation in force at the time, so it is appropriate to apply the provision. Second transfer of Law 35/2006 (ITPF), to the public retirement pension received from the Social Security, and 75% of the amount of retirement or disability benefits received must be included in the tax base.

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