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A participant in an occupational pension scheme with contributions made prior to 2007 seeks clarification on the deadline for applying the 40% tax reduction. The Directorate General for Taxes (DGT) rules that if retirement benefits are collected early following a collective redundancy, the contingency occurs at that moment, and the deadline for the reduction expires at the end of the following two tax years.
This ruling clarifies the timing for tax benefits related to old pension contributions, specifically for those opting for early retirement due to redundancy.
The tax team reviews your specific situation.
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