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V0038-14 14 January 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

The 40% reduction for lump-sum pension plan benefits can only be applied once

The taxpayer asks whether the 40% reduction can be applied to benefits from different pension plans received in different years. The DGT rules that this reduction can only be applied to amounts received as a lump sum within the same tax period.

The question raised

Possibility of receiving benefits in the indicated order. Right to apply the 40 percent reduction to the benefit received in 2018.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction for lump-sum payments is only applicable to the portion of contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution. This reduction may only be granted to amounts received as a lump sum within the same tax period, at the taxpayer's discretion. The remaining amounts received in other years shall be taxed without the reduction.

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