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An individual whose employment was terminated via a redundancy plan (ERE) and who is now unemployed seeks clarification on the deadline to apply the 40% reduction under the transitional regime. The Directorate-General for Taxes (DGT) rules that if retirement benefits are claimed early, the contingency occurs when the requirements for such payment are met.
This ruling clarifies the timing for tax benefits related to pension plan liquidations, specifically regarding the application of the 40% reduction for those transitioning from unemployment to retirement benefits.
The tax team reviews your specific situation.
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