The Supreme Court declares that maternity benefits must not pay IRPF

On the 5th of October 2018, the Supreme Court established as legal doctrine that the public maternity benefits received from the Social Security are exempt from the Personal Income Tax.

Judgment link Here

The Contentious-Administrative Chamber of the Supreme Court thus confirms the ruling of the Superior Court of Justice of Madrid, issued in June of last year (Administrative Judgment No. 1666/2017) which estimated an action brought by a mother and for the one that forced the Treasury to return the amounts entered in the IRPF as maternity allowance charged to the Social Security.

The Supreme Court supports its decision mainly in the Statement of Motives of Law 62/2003 of December 30 on Fiscal, Administrative and Social Order Measures that introduced the aforementioned exemption in Personal Income Tax Law 40/1998 that says: "In the Personal Income Tax, first of all, the exemption of the public benefits received by birth, multiple birth, adoption, maternity and dependent child is established, among which economic benefits for births are included. son and by multiple birth provided for in Royal Decree Law 112000, 14th of January".

According to the ruling, the exemption that is established includes the provision of maternity and not only those of birth, multiple birth, adoption and dependent child, and does not seem to pretend that its scope is limited to those granted by the autonomous communities or local entities, since it tries to establish the exemption of all maternity benefits, without distinction of the public body from which they are received.

Once published the statement, and this is where FERS S.L. and Balms Abogados offer their advice, it opens the way to claim the return of the amounts paid in concept of income tax for maternity benefit.

Finally, we inform you that considering the statute of limitations of 4 years, taxpayers can claim the undue withholdings in the IRPF for maternity benefit since 2014, that is, the amounts for the years 2014, 2015, 2016 and 2017 can be claimed.

If you have been a mother/father for less than four years, do not hesitate to contact us and we will help you with the claim.