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A query was raised regarding whether the 40% reduction under the transitional regime can be applied following a collective redundancy in 2018. The DGT ruled that if an early retirement benefit is collected, the contingency occurs at the time of dismissal, and the deadline for the reduction expires based on the date of that event.
This ruling clarifies the timing for exercising tax reductions on pension plan payouts, specifically linking the contingency date to the dismissal event when early retirement benefits are involved.
The tax team reviews your specific situation.
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