BASQUE COUNTRY: New deduction for corporate contributions to occupational pension schemes

Corporate contributions to occupational pension schemes other than those made to preferred pension plans integrated into voluntary social welfare entities (EPSVs) entitle to a deduction in the net tax liability. Let's see what it consists of:

What is the basis for the deduction?

It is the sum of the contributions fiscally imputed to the workers resulting from collective bargaining.

What requirements must be met to apply the deduction?

Corporate contributions must be:

- ≥ 1. 5% of the total annual gross salary in the employing entity; or

- in favor of individuals under 36 years of age at the tax accrual date.

What is the amount of the deduction?

10% on the net tax liability.

What happens between 2025 and 2029?

For tax periods starting between 1-1-2025 and 31-12-2029, to promote a progressive implementation of the system when the minimum requirements are not met; that is, if corporate contributions are less than 1. 5% of the total annual gross salary of the employing entity, you should know that you will be able to apply a 5% deduction.

Our professionals will explain in detail the new deduction and help you apply it.