Skip to content
V1811-18 ·20 June 2018 ·consulta-vinculante Medium impact
Tax

Retirement contingency for the 40% reduction occurs upon termination of employment if early withdrawal is initiated

The inquirer asks when the retirement contingency is deemed to have occurred for the purpose of applying a 40% reduction to a pension plan following dismissal. The Directorate General for Taxes (DGT) responds that, if the benefit is withdrawn early, the contingency occurs once the requirements for such withdrawal are met—specifically, upon the termination of the employment relationship and the transition to unemployment.

In 6 key points

Lifecycle

2018-06-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact