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V0951-20 17 April 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de pensiones

The 40% pension plan reduction applies only to lump-sum payments received within the same tax period

A taxpayer with contributions made prior to 2007 intends to collect part of their pension plan in 2020 and the remainder in 2021. The Directorate General of Taxes (DGT) clarifies that the 40% reduction can only be applied to lump-sum amounts received within a single tax period.

The question raised

Possibility of applying the 40 percent reduction.

The DGT's ruling

The 40% reduction applies to the portion of the benefit corresponding to contributions made until December 31, 2006, provided it is received as a lump sum and within the legal period. This reduction may only be granted to amounts received as a lump sum in the same tax period, at the taxpayer's discretion. Amounts received in other tax years shall be taxed in full without said reduction, even if collected as a lump sum.

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