Paternity benefit in income: How is tax?

IDEAL

In 2019, paternity and maternity permits were unified in a single benefit called birth and care of the minor.In addition, since 2021 the permit for both parents has the same duration: 16 weeks.During the rest time, parents do not charge the salary, but receive a subsidy equal to 100 % of a regulatory base equivalent to that of temporal disability derived from common contingencies.This has consequences on the income statement.

While the salary is part of the returns of work and as such a tax in the IRPF (Income Tax of the natural persons), the subsidy perceived by birth and care of the minor is exempt.Article 7 of the IRPF Law includes which income is exempt from this tax and among them are maternity or paternity and assimilated remuneration.Specifically, section 'H' of this article indicates that they are exempt:

- Maternity or paternity benefits and non -contributory relatives regulated in the General Law of Social Security and passive pensions and pensions of orphanhoods and in favor of grandchildren and brothers, under 22 years of age or incapacitated for all work, perceived of regimesPUBLIC OF SOCIAL SECURITY AND PASSIVE CLASSES.

Noticias Relacionadas

- The benefits recognized to professionals not integrated in the special regime of self -employed or self -employed workers for the social forecast mutuals that act as alternatives to the Special Social Security regime, provided that they are identical benefits to those of the previous paragraph.

- In the case of public employees framed in a social security regime that does not give the right to receive the benefit for maternity or paternity, the remuneration perceived during delivery permits, adoption or guard and fatherhood will be exempt.

This section of the law ends indicating that "other public benefits will also be exempt by birth, childbirth or multiple adoption, adoption, maternity or paternity, children in charge and orphanhood".The amount exempt from the remuneration or benefits will be limited to the amount of the maximum benefit that recognizes social security for the corresponding concept.Excess will be taxed as work yields.

This tax exemption is recent application in income.As explained by the Tax Agency, until 2018 the public benefits of maternity perceived of Social Security were considered as subject to IRPF.A judgment of the Supreme Court of October 3, 2018 set as legal doctrine that these benefits were exempt from the personal income tax.As a consequence of this judgment, the letter 'H' of article 7 of the IRPF Law was modified.In accordance with this legal modification, taxpayers who during the 2020 exercise have received benefits for maternity or paternity or remuneration during childbirth permits, adoption or guardian do not have to declare exempt amounts and can be deduced with supported withholdings.