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V0465-24 19 March 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% pension plan reduction applicable when receiving early retirement benefits

The inquirer asks about the timeframe for applying the 40% reduction to pension plans with contributions made prior to 2007 following a collective redundancy. The Directorate General for Insurance and Pension Funds (DGT) responds that, if early retirement benefits are received, the contingency occurs when the requirements for such payment are met.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit is paid in advance, the contingency occurs when the employment relationship is terminated due to collective dismissal and the individual enters a legal state of unemployment. To apply the 40 percent reduction on contributions made prior to 2007, the benefit must be received during the fiscal year of the occurrence or in the two following years. In this case, as the requirements were met in 2022, the period for applying the reduction expires on December 31, 2024.

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