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V0462-21 3 March 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · reducción del 40%

The 40% reduction for contributions made before 2007 can only be applied within a single tax period

A retiree inquired whether the 40% reduction for contributions made prior to 2007 could be applied across different tax years when redeeming their pension plan. The Directorate General for Taxes (DGT) ruled that the reduction can only be applied once for the same contingency.

The question raised

Possibility of reapplying the 40 percent reduction to benefits received corresponding to contributions made prior to 2007 in the event of making effective the remaining economic rights as a consequence of the occurrence of the retirement contingency.

The DGT's ruling

The 40% reduction for contributions made prior to 2007 may only be applied to amounts received as capital within the same tax period, at the taxpayer's discretion. Regardless of the number of pension plans, this reduction may only be granted once. The remaining amounts received in other tax years shall be taxed in full without said reduction.

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