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V0859-14 28 March 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · prestación de plan de pensiones

The 40% reduction on pension plan benefits can only be applied once per taxpayer

The inquirer asks whether the 40% reduction can be applied to a new lump-sum benefit after having used it for a previous one. The DGT rules that the reduction can only be granted to amounts received as capital within the same tax period, at the taxpayer's discretion.

The question raised

Right to re-apply the 40 percent reduction.

The DGT's ruling

Pension plan benefits are considered income from employment. If received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided the two-year period from the first contribution is met. However, this reduction can only be applied to amounts received as a lump sum within the same tax period, at the taxpayer's discretion. If it has already been applied in one year, amounts received in other years shall be taxed without said reduction.

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