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V0351-15 30 January 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction on pension withdrawals applies once per tax year

The taxpayer asks whether they can take a pension as income in 2014 and as a mixed payment in 2016. The tax authority responds that pension withdrawals are considered income from employment, and the 40% reduction can only be applied to amounts taken as capital within the same tax year.

The question raised

Possibility of receiving benefits in the indicated order. Taxation of benefits.

The DGT's ruling

Pension plan benefits constitute earned income included in the general tax base. The 40% reduction applies to the portion of the benefit received as a lump sum corresponding to contributions made until December 31, 2006, provided that 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, regardless of the number of plans held by the taxpayer. Therefore, the reduction may only be applied in a single year.

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