Can I request a refund of the tax I already paid?
Analysis of the Judgment of the Superior Court of Justice of Madrid (judgment 810/2016, of July 6, Administrative Litigation Chamber).
The Social Security system has stopped deducting income tax (IRPF) from maternity benefits, following a Supreme Court ruling that determined public maternity benefits are exempt from this tax. Therefore, benefits already approved and in the payment phase will see this measure applied to the October payroll, as reported by the Ministry of Labor in a statement.
The National Social Security Institute (INSS) has issued precise instructions to its provincial offices for the implementation of this ruling. Therefore, newly granted benefits will be paid without the aforementioned discount, and those already granted and in the payment phase will also be paid in October without the corresponding income tax withholding.
This measure also benefits applications submitted electronically through the 'Your Social Security' portal. Maternity benefit applications have not been interrupted, and until the IT changes to automatically eliminate the withholding take effect, a manual procedure has been implemented to remove the income tax.
On the other hand, regarding benefits already received, the Spanish Tax Agency (AEAT) is still working to establish a procedure to handle the large number of claims from beneficiaries of previous years. It is estimated that around one million taxpayers are entitled to a refund of the income tax (IRPF) applied to these benefits. Specifically, this affects mothers who received this benefit in 2014, 2015, 2016, and 2017.
If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
Meritxell Arnal
Director of the Labor Area
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A graduate in Labor Relations from the Rovira i Virgili University of Tarragona, she began her professional career at the temporary employment agency Alta Gestión as head of recruitment, a position she later held at Marlex Gestió. She then joined Bufete Gatsa as head of the labor department. In June 2014, she joined Àmbit Assessor, SL to head the labor management department.
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