The Supreme Court confirms that maternity and paternity benefits are exempt from taxation on Personal Income Tax (IRPF), so claims of this money paid can be made.

On 5th October 2018, those who have become parents recently received good news: the Supreme Court confirmed that maternity and paternity benefits are exempt from taxation on Personal Income Tax (IRPF).

This means those people who paid taxes for their paternity or maternity benefits can claim and recover their money paid.

The maternity benefits, paid by Social Security, aim to replace the employee’s normal remuneration, which pays for personal income tax. However, the High Court considers now that these benefits should be exempt from taxation, and included in art. 7 of the Income Tax Law, where exemptions are listed.

In accordance with this interpretation, the maternity and paternity benefits received from the Autonomous Communities, and also those paid by the Social Security (National Body) will be exempt, without distinction from which governmental body it is received.

How to claim reimbursements of the money paid in the IRPF due to the maternity or paternity benefits?

According to this sentence of the Supreme Court, those affected who were taxed on their income for the benefits received between 2014 and 2017 can claim their money back.

On the 10th October, the Spanish Tax Agency confirmed their acceptance of the doctrine of the Supreme Court, speeding up the procedures involved in the claim process, and making available a specific form.

Claims can be presented by:

  • Taxpayers who paid taxes for their maternity or paternity benefits from 2014 to 2017. They will be able to claim what they paid in excess and will receive the corresponding compensation.
  • Former claimants (those who claimed before 5th October) which are waiting to receive a decision. The agency itself will act positively, taking into account the new doctrine.

For those who became parents in 2018, in the 2018 Income Tax Campaign, the benefits will show in the tax data, and the withholding tax will appear as deductible. They will only have to declare the income tax taking into account this information.

On the other hand, those affected who have already received a final decision (outside of the appeal period), and rejected the request for the correction of the declaration, will not be subject to review, and will not be refunded.

If you would like to receive more information about how to claim your money paid for your maternity or paternity benefits, do not hesitate and contact our expert lawyers, who can help you with your claim.