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An executive has enquired whether the 30% Personal Income Tax (IRPF) reduction applies when receiving a retirement benefit from a collective insurance scheme used to fulfil pension commitments. The Directorate General for Tax Assurance (DGT) has ruled that such benefits are not entitled to this reduction.
This ruling clarifies that retirement benefits derived from collective insurance schemes intended to meet pension commitments do not qualify for the 30% tax reduction typically applied to certain employment income.
The tax team reviews your specific situation.
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