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V0105-25 5 February 2025 · SG de Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Retirement is a contingency distinct from disability for the purpose of calculating the period for the 40% reduction

A taxpayer with a permanent disability since 2012 and retirement in 2023 asks whether they can apply the 40% reduction for contributions made prior to 2007. The DGT responds that, as retirement is a contingency distinct from disability, the period for applying the transitional regime is calculated from the date of retirement.

The question raised

Question posed: Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits are earned income. If received as a lump sum, the 40% reduction may be applied to the portion of contributions made until December 31, 2006, provided that the time limits of the twelfth transitional provision are met. Since retirement is a contingency distinct from occupational disability, the period for applying said transitional regime is determined by the date of retirement and not by the date of the disability.

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