For this to be respected, the taxpayer must meet certain requirements.
When are voluntary retirement contributions deductible?
The Income Tax Law (ISR Law) establishes that workers can deduct voluntary contributions, as long as these resources are destined to be used after 65 years of age. That is, after retirement, but also in cases of disability or inability to work for pay.
Other requirements for voluntary contributions to be tax deductible are the following:
That the amount of the deduction is up to 10% of the taxpayer’s cumulative income in the fiscal year.
That the contributions do not exceed the equivalent of five minimum wages, raised per year.
What is the tax incentive for voluntary contributions?
The Income Tax Law also provides a tax incentive that consists of subtracting from the tax base, deposits in special personal savings accounts and insurance contract premium payments based on age-related pension plans, retirement or retirement.
Prodecon indicated that the SAT cannot deny this deduction
Based on the foregoing, the SAT cannot deny the return of the balance in favor, which results from the annual declaration, when the taxpayer declares the voluntary contributions for retirement as personal deductions.