Clarifications on the contributions to the Mupiti Professional insurance and its declaration to the Personal Income Tax for the year 2021.

In accordance with article 30.2 of Law 35/2006, of 28 November, on personal income tax, the amounts paid to your Mupiti Professional insurance, as it is the instrument for the Whoever opts for the Mutual Society as an alternative to the Special Scheme for Self-Employed Workers (RETA), is considered a tax deductible expense for the activity. Thus, for the purposes of determining the net performance of the economic activity, you will be able to deduct the amounts paid with the limit of the maximum quota for common contingencies that is established in each financial year, which for 2021 is 13,822.06 euros per year.

When entering this information on the Personal Income Tax return form (Form 100), you must fill in box 0186: “Social security or contributions to alternative mutual societies of the holder of the activity”, with the amount of these contributions

It may happen that the amount of the contributions exceeds the maximum annual deductible limit for the declared year. In this case, the excess may be subject to a reduction in the taxable base of personal income tax, although only in the part that has as its object the coverage of the contingencies provided for in article 8.6 of the revised text of the Regulation Law. of the Pension Plans and Funds, that is to say: retirement, total and permanent incapacity for work for the habitual or absolute and permanent profession for all work, great disability, death, severe dependence or great dependence.

In order to declare the amounts that exceed the maximum deductible expense, as well as the contributions paid under insurance contracts that you have agreed with the Mutual Society -with the coverage of the contingencies of article 8.6 of the Law on Pension Plans and Funds-, you will need to go to the “Tax Base Reductions” section of the tax return form, and fill in box 0465 of “Reductions for contributions and contributions to social security systems” for the 2021 financial year.

For the purposes of contributions and contributions to social security systems that are subject to a reduction in the general tax base, it should be borne in mind that these amounts together with those that may be made to other insurance or pension plans with the same tax treatment to other entities , may not exceed the maximum limit applicable to the General Scheme, set at the lower of the following amounts: o 2,000 euros per year o 30% of the sum of net income from work and economic activities received individually during the year.