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V0374-24 12 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · jubilación demorada

Lump-sum deferred retirement supplement qualifies for 30% tax reduction

A Civil Service Pension Scheme member inquired whether the lump-sum portion of the mixed option for the deferred retirement supplement is eligible for the 30% Personal Income Tax (IRPF) reduction. The Directorate-General for Taxes (DGT) ruled that this reduction is indeed applicable to payments received as a lump sum.

The question raised

If the mixed option is chosen to receive the economic supplement for delayed retirement, which combines the application of an additional percentage and a lump sum amount as a single payment, it is asked whether said single payment would be entitled to the 30% reduction provided for in Article 18.3 of the LIRPF or any other article.

The DGT's ruling

The economic supplement for delayed retirement is classified as income from employment. In the mixed option (letter c of Article 210.2 of the TRLGSS), the 30% reduction provided for in Article 18.3 of the LIRPF is applicable only to the payment made as a lump sum.

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