Skip to content
V0029-23 ·16 January 2023 ·consulta-vinculante Medium impact
Tax

30% reduction applies to lump-sum payments for delayed retirement

A taxpayer queried whether a lump-sum payment for delayed retirement qualifies for the 30% reduction under Article 18 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that since it is a Social Security benefit received as a lump sum, the reduction is applicable.

In 6 key points

How it affects those involved

Taxpayers receiving delayed retirement benefits as a single lump-sum payment are entitled to a 30% reduction on the taxable amount, reducing their overall income tax liability.

Lifecycle

2023-01-16PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact