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A query was raised regarding the deadline to apply the 40% tax reduction for contributions made prior to 2007 following a collective redundancy. The Directorate General for Taxes (DGT) clarified that if retirement benefits are claimed early due to redundancy, the contingency is deemed to have occurred in the year of the dismissal.
This ruling clarifies the timing for tax benefits on pension plans for employees facing redundancy, specifically regarding the application of transitional tax reductions.
The tax team reviews your specific situation.
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