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A taxpayer inquired about the deadline to apply the 40% reduction when redeeming a pension plan following a collective redundancy. The Directorate General of Taxes (DGT) ruled that if the benefit is redeemed early due to the termination of the employment relationship, the contingency occurs at that moment, and the deadline to apply the reduction expires at the end of the second subsequent financial year.
The tax team reviews your specific situation.
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