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A Civil Service Pension Scheme member inquired whether the lump-sum portion of the mixed option for the deferred retirement supplement is eligible for the 30% Personal Income Tax (IRPF) reduction. The Directorate-General for Taxes (DGT) ruled that this reduction is indeed applicable to payments received as a lump sum.
This ruling clarifies the tax treatment for Civil Service pensioners opting for a mixed payment method for deferred retirement supplements, confirming their eligibility for the specific tax reduction on lump-sum payments.
The tax team reviews your specific situation.
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