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V1169-18 ·8 May 2018 ·consulta-vinculante Medium impact
Tax

40% reduction applicable to lump-sum withdrawals from EPSV for contributions made prior to 2007

A resident in common territory has enquired about the tax treatment and potential reductions when withdrawing an individual social welfare plan (EPSV) as a lump sum. The Directorate General for Taxes (DGT) has ruled that such benefits are classified as employment income and that the 40% reduction can be applied to the portion corresponding to contributions made up to 31 December 2006.

In 6 key points

How it affects those involved

This ruling clarifies the tax benefits available for long-term savings plans, specifically confirming that the transitional regime allows for a significant tax reduction on lump-sum payments derived from older contributions.

Lifecycle

2018-05-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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