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V0611-18 7 March 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

30% tax reduction cannot be applied to pension plan benefits

A query was raised regarding whether pension plan benefits that include a retirement incentive can benefit from the 30% tax reduction. The Directorate General for Taxes (DGT) ruled that such benefits are not eligible for this reduction.

The question raised

Whether the retirement benefit to be received from the pension plan may qualify for the 30 percent reduction established in Article 18.2 of Law 35/2006.

The DGT's ruling

Pension plan benefits are considered income from employment pursuant to Article 17.2.a).3 of Law 35/2006. Article 18.2 of the same law regulates the 30 percent reduction for other types of income, but expressly excludes those provided for in Article 17.2.a).3. Therefore, the reduction is not applicable to pension plan benefits.

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