A sentence establishes that the amounts paid by a woman must be returned
The Supreme Court has established that maternity benefits received from Social Security are exempt from Personal Income Tax (IRPF), according to a ruling made public this Friday.
In said judgment, it dismissed an appeal from the State Attorney's Office that argued that said benefits should not be exempt from personal income tax. The Supreme Court confirms a judgment of the Superior Court of Justice of Madrid, of June 2017, which upheld the appeal of a woman and ordered the Treasury to return the amount entered in the 2013 personal income tax for the maternity benefit charged to the Social Security received in said year.
Appeal by the State
The State attorney appealed the sentence to the Supreme Court, considering that it was contradictory to the rulings of the higher courts of Castilla y León and Andalusia on the same matter. He argued that the maternity benefit has the function of replacing the normal remuneration that the taxpayer would obtain for her habitual work and that she has stopped receiving when enjoying the corresponding leave.
In the ruling, the Supreme Court considers that the maternity benefit paid by Social Security can be included in the case provided for in the third paragraph letter h of article 7 of the Personal Income Tax Law. This provides that "the other public benefits for birth, childbirth or multiple adoption, adoption, dependent children and orphanhood will also be exempt."
Birth, multiple birth, adoption, maternity...
In the first place, because this is clear from the Statement of Motives of Law 62/2003, of December 30, on Fiscal, Administrative and Social Order measures: "In the Personal Income Tax, in the first place, the exemption of public benefits received for birth, multiple birth, adoption, maternity and dependent children is established, among which are included the economic benefits for the birth of a child and for multiple births provided for in Royal Decree Law 112 000, of January 14”.
From this text "it follows that the exemption that is established includes the maternity benefit and not only those of birth, multiple birth, adoption and dependent child", according to the argument of the Supreme Court. "It expressly refers to maternity benefits and does not seem to claim that its scope is limited to those granted by the autonomous communities or local entities, but rather tries to establish the exemption of all maternity benefits, regardless of the public body from which they are received", it adds.
Interpretation of the benefit
Beyond a grammatical reading that the Supreme Court makes around the word 'also', the argument ends with an interpretation of the provision. Said subsidy tries to compensate the loss of income of the worker as a result of the rest permit due to the birth of a child, adoption, guardianship or foster care, and during this period the employment contract is suspended, interrupting the work activity, according to the court.
In this way, the Supreme Court recalls that maternity, adoption, custody for the purpose of adoption and foster care are considered protected situations. "Consequently -concludes the judgment- the maternity benefit can be included in the case provided for in the third paragraph of letter h of article 7 of the LIRPF, and therefore the appeal must be dismissed and establish as a legal doctrine that 'public maternity benefits received from Social Security are exempt from Personal Income Tax'."
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