GENERAL INDICATIONS RELATING TO THE TAX SCHEME IN THE REGION OF GUIPUZCOA
PREMIUM TAX SCHEME
The premiums paid for insured pension plans that fulfil the regulatory requirements may be deducted from the IRPF taxable amount with a limit of 5,000 per annum.
For these purposes employer contributions are not taken into account. Nevertheless, respecting the established limits for each one (individual contributions and employer contributions), the overall limit for deductions for contributions and payments to pension plan systems is 12,000 euro per annum.
Regardless of the aforementioned deduction, taxpayers whose spouse or de facto partner does not obtain any net earned income to be incorporated in the general taxable amount or who obtains less than 8,000 per annum, may deduct from the general taxable amount the contributions made to insured pension plan systems held by said spouse or de facto partner, with a maximum limit of 2,400 euro per annum (these contributions are not subject to ISD).
The aforementioned contributions that could not be deducted from the taxable amount due to insufficiency thereof may be applied in the following five years.
Contributions made to insured pension plans in favour of people with a certain level of disability and kinship may also be deducted from the taxable amount, pursuant to the regulatory limits prevailing at any time (these contributions are not subject to ISD):
All the aforementioned deduction limits are combined for the sum of the contributions made by the taxpayer to pension plans, mutual insurance pension plans, insured pension plans, company pension plans and dependency insurance policies.
TAX SCHEME FOR BENEFITS
The benefits received by the beneficiaries of insured pension plans are subject to IRPF, as personal earned income, regardless of whether or not they are survivor or death benefits.
In general, all benefits received in the form of capital are incorporated in their entirety.
Notwithstanding the aforementioned, this incorporation will be 60 percent in the case of the first benefit received for each of the different contingencies, provided more than two years has elapsed since the first contribution payment. The two years deadline is not applicable in the case of benefits for disability or dependency.
For these purposes, first benefit is deemed as the amounts as a whole received in the form of capital during a single tax period due to the occurrence of each contingency.
The same rule established in this section will also be applicable to the amounts received in the case of serious illness or long-term unemployment.
WITHHOLDINGS ON ACCOUNT OF THE TAX
Net earned income derived from insured pension plan benefits are subject to withholding on account of IRPF at the percentage established in each case, based on the personal circumstances of the beneficiary.