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A query was raised regarding the deadline to apply the 40% reduction for contributions made prior to 2007 following a collective redundancy. The Directorate General for Insurance and Pension Funds (DGT) clarified that if retirement benefits are claimed early due to redundancy, the contingency occurs at the moment the requirements for such payment are met.
Question posed: Available period to apply the 40 percent reduction provided for in the transitional regime.
If the retirement benefit is collected early, the contingency occurs when the requirements to receive it are met (termination of the employment relationship due to collective redundancy and unemployment status). In this case, the contingency is understood to have occurred in the fiscal year in which said requirements are met. The deadline to apply the 40% reduction on contributions made prior to 2007 expires in the two fiscal years following that of the contingency.
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