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V1090-22 18 May 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Disability exemption and 40% reduction cannot be applied if legal deadlines have expired

A taxpayer with a disability inquired whether they could apply both the disability exemption and the reduction for contributions made prior to 2007 to their pension plan. The Directorate General of Taxes (DGT) ruled that the exemption cannot be applied because the contributions were made under the general regime, and the reduction cannot be applied because the statutory deadline expired in 2019.

The question raised

Question raised: Taxation of the benefit received in the event of redemption. Whether both the 50 percent reduction and the exemption provided for amounts redeemed in the form of an annuity up to a maximum annual amount of 3 times the IPREM can be applied to the total amount. Possibility of applying the reduction provided for in the transitional regime.

The DGT's ruling

The disability exemption only applies if the pension plan was established specifically for the benefit of persons with disabilities. Benefits from pension plans under the general regime are taxed as employment income. The 40% reduction for contributions made prior to 2007 is only applicable if the benefit is received within the timeframes set forth in the twelfth transitional provision. In this case, as the retirement occurred in 2011, the period for applying said reduction expired on December 31, 2019.

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