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V0060-21 21 January 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% and 30% tax reductions do not apply to lump-sum payments from collective insurance policies contracted in 2012

A retiree inquired whether tax reductions could be applied when receiving a lump-sum payment from a collective pension insurance policy contracted in 2012. The Directorate General for Taxes (DGT) ruled that no reduction is applicable as the requirements regarding seniority and the type of income are not met.

The question raised

Taxation of the benefit. In the event that the benefit is received as a lump sum, the possibility of applying any reduction.

The DGT's ruling

The provision of a collective insurance policy that instruments pension commitments is integrated as income from employment. The 40% reduction does not apply because the insurance was contracted in 2012, outside the transitional regime for contracts prior to January 2006. The 30% reduction for irregular income also does not apply, as Article 18 of the Personal Income Tax Law expressly excludes the income referred to in Article 17.2.a).5.

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