Net tax base
Reductions in the general tax base
Reductions for contributions and contributions to social security systems
-
Maximum annual contributions (except for collective dependency insurance) and maximum joint reduction limit
As a result of the amendments introduced by article 59 of Law 22/2021, of December 28, on the General State Budget for the year 2022, in the reduction limits for contributions to social security systems, the general limit goes from 2,000 to 1,500 euros, while the additional increase in said limit is raised from 8,000 to 8,500 euros and not only through employer contributions, as was already the case in 2021, but also through contributions from the worker to the same social security instrument, provided that these contributions are equal to or less than the respective employer contribution.
For these purposes, amounts contributed by the company that arise from a decision made by the employee are considered to be employee contributions.
Furthermore, Law 12/2022, of June 30, regulating the promotion of occupational pension plans, which modifies the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29, has approved the regulatory framework for pan-European individual pension products.
-
Excess of contributions made and not reduced in previous years
As regards the way of applying excess contributions that could not have been reduced in previous years, for the year 2022, as a result of the new limits applicable to reductions for business contributions, the Regulation of Personal Income Tax has been modified, with the intention of facilitating the application of the excesses pending reduction and mitigating their complexity. To this end, the proportional application of the excesses between contributions is eliminated, and the application of the increased maximum limit (1,500 + 8,500 euros) is permitted regardless of the origin of the amounts contributed, understanding that in the year in which they were paid, the maximum annual contributions were respected (article 51.6 and Sixteenth Additional Provision of the Tax Law).
On the other hand, excess amounts corresponding to premiums for collective dependency insurance will be imputed within their own limits.
-
Early availability of consolidated rights for taxpayers affected by the volcanic eruption on the island of La Palma
In order to enable those affected by the volcanic eruption on the island of La Palma to meet their unforeseen liquidity needs, Article 11 of Royal Decree-Law 20/2021, of 5 October, adopting urgent support measures for the repair of the damage caused by volcanic eruptions and for the economic and social reconstruction of the island of La Palma ( BOE of 6 October), established, on an exceptional basis and exclusively during the period between 6 October 2021 and 5 July 2022, the possibility for members of pension plans, as well as policyholders of insured pension plans and company social pension plans and members of social pension mutual funds to make early withdrawals in certain cases of their consolidated rights, establishing the conditions and a maximum amount of withdrawal.