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V0808-23 5 April 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de pensiones

Deadline for 40% reduction on early pension plan withdrawals ends on 31 December 2024

An individual affected by collective redundancy sought clarification on the deadline to apply the 40% tax reduction for contributions made prior to 2007. The Directorate General of Taxes (DGT) ruled that, when claiming early retirement due to redundancy, the contingency occurs once the requirements for such payment are met.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit is paid in advance, the contingency occurs when the requirements to receive it are met (termination of the employment relationship due to collective dismissal and unemployment status). For contingencies occurring in 2022, the transitional 40% reduction regime may only be applied in the year of occurrence or in the two following years. In this case, the period ends on December 31, 2024.

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