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V0467-24 19 March 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

40% reduction inapplicable as transitional regime deadline has expired

The inquirer asks whether the 40% reduction provided for in the twelfth transitional provision can be applied when redeeming a long-term unemployment pension plan. The Directorate General for Taxes (DGT) responds that, as it could be treated as early retirement due to collective redundancy, the contingency occurred in 2011 and the deadline to apply the reduction expired in 2019.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If early retirement and long-term unemployment occur concurrently, for tax purposes, the contingency is understood to be retirement. In the case of early retirement due to collective dismissal, the contingency occurs when the employment relationship is terminated and the individual enters a state of unemployment. For contingencies occurring in 2011, the period for applying the 40% reduction on contributions made prior to 2007 ended on December 31, 2019.

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