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A taxpayer inquired whether the 40% reduction could be applied to a lump sum benefit from a collective insurance policy contracted in 2012. The Directorate-General for Taxes (DGT) ruled that this is not possible, as the transitional regime applies exclusively to insurance policies contracted before 20 January 2006.
This ruling clarifies that taxpayers receiving lump sum payments from collective insurance policies contracted after the 2006 cutoff cannot benefit from the tax reduction typically associated with retirement benefits.
The tax team reviews your specific situation.
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