2024-01-02 01:26:54
Tuesday, January 2, 2024, 00:26
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For more than a decade – between January 1, 1967 and December 31, 1978 – thousands of workers contributed amounts to their corresponding labor insurance companies that were not susceptible to deduction in the personal income tax base. A ruling by the Supreme Court (TS) on February 28 recognizes the right of these employees to recover part of that money.
The amounts to be claimed -at the Treasury window- depend on the contributions made at that time to the corresponding labor mutual benefit. In some cases it can reach up to 4,000 euros, although the most normal thing is to get between 400 and 1,000 euros.
The beneficiaries are now retirees, and they have the right to a refund of that extra taxed money during the tax periods that have not yet expired (the last four years), and to a tax adjustment for their benefit in future returns.
The origin of the Supreme Court ruling is in a claim by bank workers, but it can be extended to other sectors such as metallurgy, construction or shipyards, among many others, organized in labor mutual societies.
In those years of the last century, they were the entities in charge of collecting contributions from workers and subsequently paying their retirement pension. Under the tax system of that time, these contributions were not considered a deductible expense from the workers’ annual income. Therefore, they were not exempt from declaring personal income tax.
The subsequent tax legislation – already in 1998 – introduced a transitional provision to avoid what, de facto, was double taxation: since contributions to mutual societies had been considered as income, at least part of the retirement pension that those workers would receive should be exempt (25%).
As this provision affected pensions paid by mutual societies, and that of bank employees was extinguished at the end of 1978, the Supreme Court admitted in its ruling last February that these workers were also victims of double taxation. The reason is that a part of the pension they receive from Social Security was generated with contributions made to the mutual insurance company in their sector.
The TS maintains that these workers now have the right to claim before the Treasury that 25% of their retirement or disability pension be deducted in their statements for the four years prior to the ruling (from 2019 to 2022).
Individual claims
However, the refund will not be made ex officio, and it is those affected who must initiate an individual claim. For this it is necessary, first of all, and as indicated by the ESK union, to request the working life to verify the period of contributions to mutual societies.
The “simplest and fastest” procedure is to do it through the website of the National Social Security Institute (INSS). «If this information does not appear, it would be interesting to request from the company a certificate or similar of the amounts contributed to the mutual society in the period 1967/68 or, failing that, a certificate of seniority in the company, indicating the date of entry into the company. same and date of termination of the professional relationship,” adds the union.
Then you must make an appointment at the Treasury to present a rectification document and fill out the corresponding form with the following text: «I request the rectification of the Income Tax Returns corresponding to the periods 2019, 2020, 2021 and 2022 based on ruling 255. /23 of 02/28/2023 of the TS according to which, the part of the pension corresponding to the contributions made to Mutuas Laborales before 1/1/1979, must be subject to a 25% deduction in the personal income tax base.
ESK warns that applicants may be asked for a copy of their personal income tax returns for the last four years. And that the period to file the claim ends in June 2024.
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