What pensioners can claim and how the process works
The Spanish Tax Agency AEAT announced in a statement that on March 20 it opened an electronic form for pensioners receiving retirement and permanent disability benefits who contributed to mutual societies. These individuals can request refunds of the personal income tax for the period 2019 to 2023. This step follows a Supreme Court ruling that affirmed the right of many pensioners who contributed to old labor mutuals to recover part of the contributions declared for IRPF during the years from January 1, 1967 to December 31, 1978. The measure may impact a large portion of MUFACE pensioners, which is why the Mutuality has been sending various certificates and notices to beneficiaries. AEAT indicates that no extra documentation needs to be attached to the application. The Social Security system has already provided AEAT with the necessary information, including the life record of applicants. In this line, pensioners are told not to request any certificate or report from the General Treasury of the Social Security, the National Institute of Social Security, or the Institute of the Sea, nor the life record. If AEAT cannot resolve a specific request, the relevant authority will contact those interested to supply the missing documents later. Regarding the amount of the refund, the agency explains that a tax credit will be issued if, after applying the transitional provision, the tax due is less than the amounts previously paid through a prior tax return and with withholdings.
Who can claim will be detailed on the AEAT website. It specifies that supplementary pensions and those paid by INSS or the Institute of the Sea can be claimed when there were contributions to labor mutuals before January 1, 1967. That portion of the pension will not be taxed. Contributions made between January 1, 1967 and December 31, 1978 are taxed at 75 percent of that pension portion. Contributions to substitute mutualities of the Social Welfare entities before January 1, 1979 are taxed at 75 percent of that pension portion as well.
Those pensioners who cannot claim are those who receive pensions that fall into categories such as public service pensions under Clases Pasivas for civil servants, when they have always been in the Clases Pasivas regime and not in a mutuality. Also excluded are autónomos who paid into labor mutuals since deductions were already claimed in the past, avoiding double taxation on the current pension. Other excluded categories include widows pensions not arising from precontributions and non-contributory pensions not tied to prior contributions.
How it will appear on the 2023 tax return. If everything is in order, the reduction will appear in the tax data as Adjuste por Mutualidades – DT2 LIRPF and will be applied automatically to the declaration. Contribuyentes who have already received an estimatory resolution of rectification requests for prior years will not need to file the form published on March 20. In cases where the AEAT cannot resolve a particular request, the responsible body will later contact the interested parties to provide the necessary documentation.