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V0495-15 6 February 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction possible on retirement pension after prior unemployment claim

The consultant asks whether a 40% reduction on an unemployment pension can be reapplied to a retirement pension. The DGT responds that, as retirement is a different contingency, the reduction can be reapplied.

The question raised

Possibility of applying the 40 percent reduction to the lump sum received in 2015 from an individual pension plan. Right to reapply said reduction to benefits received as a lump sum from another pension plan in a future tax year, following the onset of retirement.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, the 40% reduction may be applied pursuant to the twelfth transitional provision of Law 35/2006. Once the reduction has been applied in a given year, any remaining amounts received in subsequent years shall be taxed without said reduction. However, as retirement is a contingency distinct from unemployment, it is possible to apply the reduction again if the retirement benefit is received as a lump sum.

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