Skip to content
Back to index
V0496-15 6 February 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% capital pension reduction applies only once per tax period

A taxpayer asks whether the 40% reduction can be applied to capital withdrawals from a second pension after already receiving one. The DGT responds that the reduction can only be granted for capital amounts received within the same tax period.

The question raised

Possibility of receiving benefits in the indicated order, applying the 40 percent reduction to the capital received from the second of the plans.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction applies to the portion of the benefit corresponding to contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution. This reduction may only be granted to amounts received as a lump sum within the same tax period. Amounts received in other years shall be taxed without the reduction, even if they are collected as a lump sum.

Book your free first meeting