Labor

Mutual members will be able to claim their personal income tax refund beyond June 30.

The Treasury extends the validity of the form despite the end of the tax campaign.

Retirees Looking for Work
ARA
01/07/2025
2 min

Mutual society members who have not yet filed for personal income tax refunds will be able to do so no later than June 30, according to the Tax Agency.

The Treasury has made this decision while awaiting final approval of the new law that will allow members to return in a single payment the personal income tax owed for the years 2019, 2020, 2021 and 2025, as well as for previous years that have not expired. The Tax Agency expected the regulations to be approved on June 30, but in view of the delay, the refund application form will remain published on its website.

Before the start of the campaign this year's income tax return, the Ministry of Finance announced that retirees who paid more personal income tax than they should have would receive the compensation they owe. Specifically, the measure is aimed at those pensioners who made contributions to a mutual insurance company during their working life.

According to the Supreme Court's ruling, retirees who contributed through the former professional mutual insurance companies can reduce their income tax returns. The goal is to avoid double taxation on contributions they made in the past. As announced by the Minister of Finance, Maria Jesús Montero, the measure will have an impact of €6 billion.

Who can receive personal income tax compensation?

Pensioners who made contributions to mutual funds before January 1, 1999, can apply this reduction. However, the reduction varies depending on the date of these contributions and the type of mutual fund. If contributions were made between January 1, 1967, and December 31, 1978, the personal income tax refund will be lower, and only 75% of this portion of the pension will be taxed. In this case, only 75% of the pension derived from these contributions will be taxed.

For Personal Income Tax (IRPF) for 2024 and subsequent years, the procedure will be automatic. If the Tax Agency has all the information, the reduction will appear in the tax data for each year under the heading "Adjustment for Mutual Societies - DT2 LIRPF." The adjustment will be automatically applied to the Personal Income Tax return. For processing Personal Income Tax refund applications from 2019 to 2022 and prior years not yet expired, the procedure is as follows: a new application form must be submitted Available on the Tax Agency's website. You have until June 30th, the closing date of this year's tax campaign.

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