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V0497-15 6 February 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction applicable only to pension contributions made in a single tax year

The consultant asks whether a 40% reduction on pension contributions made before 2007 can be applied when receiving retirement in cash. The DGT responds that this reduction applies only to amounts received within the same tax period.

The question raised

Application of the 40 percent reduction to the portion corresponding to contributions made until December 31, 2006.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, a 40% reduction may be applied 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 can only be granted to amounts received as a lump sum within the same tax period, regardless of the number of plans held by the taxpayer.

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