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A query was raised regarding whether the 40% reduction under the transitional regime could be applied to two separate withdrawals: one for long-term unemployment and another for retirement. The Directorate-General for Tax (DGT) ruled that these are distinct contingencies, and the retirement benefit allows for the application of said reduction provided the requirements are met.
This ruling clarifies that the application of the 40% reduction for retirement is independent of previous withdrawals made due to unemployment, as they constitute different tax contingencies.
The tax team reviews your specific situation.
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