Back to index
V0122-25 7 February 2025 · SG de Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits are taxed as employment income and may be subject to a 40% reduction under specific conditions

The taxpayer inquires about the transfer of rights from an occupational pension plan to an insured provident scheme and its tax implications. The DGT clarifies that the transfer is within the competence of the Directorate General of Insurance and that benefits are taxed as employment income.

The question raised

Question posed: Transfer of economic rights from an occupational pension plan to an insured provident scheme and the resulting tax consequences for Personal Income Tax (IRPF).

The DGT's ruling

Pension plan benefits are considered employment income and must be included in the general taxable base of the Personal Income Tax (IRPF). If received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that two years have elapsed since the first contribution and they are received within the period established by the twelfth transitional provision. For contingencies occurring in 2022, the period for applying this final transitional regime expires on December 31, 2024.

Email
Contact