New regulations for 2022

Main tax changes introduced by Law 12/2022, of June 30, regulating the promotion of employment 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

de regulación para el impulso de los planes de pensiones de empleo, por la que se modifica el texto refundido de la Ley de Regulación de los Planes y Fondos de Pensiones, aprobado por Real Decreto Legislativo 1/2002, de 29 de noviembre.(BOE, 01-julio-2022)

PERSONAL INCOME TAX

1. New reduction limits in the tax base of contributions and contributions to social security systems.

   With effect from January 1, 2023 , as the joint maximum limit for contributions or contributions to social security systems, the lower of the following amounts will apply:

   1. 30% of the sum of the net income from work and economic activities received individually during the year.

   2. 1,500 euros per year.

   This limit will be increased in the following cases, in the amounts indicated:

   1. In 8,500 euros per year, provided that such increase comes from business contributions, or from worker contributions to the same social security instrument for an amount equal to or less than the result of applying the following coefficients to the respective business contribution:

      Annual contribution amount	Coefficient
      Equal or less than 500 euros	2.5
      Between 500.01 and 1,000 euros	2
      Between 1,000.01 and 1,500 euros	1.5
      More than 1,500 euros	1

      In any case, coefficient 1 will be applied when the worker obtains full income from work in the year exceeding 60,000 euros from the company that makes the contribution.

      For these purposes, amounts contributed by the company that derive from a decision by the employee will be considered as contributions by the employee.

   2. In 4,250 euros per year, provided that such increase comes from:

      • contributions to simplified employment pension plans for self-employed or self-employed workers;
      • or from the individual entrepreneur's or professional's own contributions to employment pension plans, of which he is the promoter and, in addition, a participant, or to Social Security Mutual Funds of which he is a member, as well as those made to company social security plans or collective dependency insurance of which, in turn, he is the policyholder and insured.

   In any case, the maximum amount of reduction due to the application of the increases provided for in numbers 1 and 2 above will be 8,500 euros per year.

   In addition, the limit of 5,000 euros per year for collective long-term care insurance premiums paid by the company that already existed is maintained.

2. The sixteenth Additional Provision is modified to adapt the financial limits of contributions and contributions to social security systems to the new limits of article 52 of the LIRPF .

3. To the pan-European individual pension products regulated by Regulation ( EU ) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European individual pension product, The treatment corresponding to pension plans will apply to this Tax.