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V0866-24 23 April 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

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 unemployment requirements 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, such as the termination of the employment relationship due to collective dismissal and the transition to unemployment status. To apply the 40 percent reduction on contributions made prior to 2007, the benefit must be received in the fiscal year of the occurrence or in the two following years. In this case, as the contingency occurs in 2022, the period ends on December 31, 2024.

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