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V0364-15 30 January 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% pension scheme reduction applicable only once per tax period

The consultant asks whether the 40% reduction can be applied to contributions before 2007 from two different pension schemes in different years. The DGT responds that the reduction can only be applied to capital receipts from a single pension scheme within the same tax period.

The question raised

Possibility of applying the 40 percent reduction to the capital received from an occupational pension plan.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum or a mixed payment, the 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. However, this reduction can only be granted to amounts received as a lump sum within the same tax period. Amounts received in other years shall be taxed in full without said reduction.

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