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V0499-15 9 February 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction possible on pension plan capital withdrawals for contributions before 2007

The taxpayer asks whether a 40% reduction can be applied in 2015 when withdrawing capital from their pension plan for contributions made up to 31 December 2006. The DGT confirms this is possible provided the temporary regime requirements are met and the 40% reduction is not exceeded in a single tax period.

The question raised

Possibility of applying the 40 percent reduction to the capital received from the pension plan in 2015.

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 between the first contribution and the contingency. This reduction may only be applied to amounts received as a lump sum within the same tax period. Amounts received in other years shall be taxed in full without the reduction.

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