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A consultant inquired about the timeframe for applying the 40% reduction to contributions made prior to 2007 following a collective redundancy. The Directorate General for Insurance and Pension Funds (DGT) ruled that, if early retirement is claimed, the contingency occurs when the requirements for such payment are met.
This ruling clarifies the timing of the pension contingency for individuals opting for early retirement, affecting how tax reductions on older pension contributions are applied.
The tax team reviews your specific situation.
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