Back to index
V1091-22 18 May 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction and disability exemption cannot be applied to general pension plan benefits

A beneficiary of a pension plan following the death of her spouse inquired whether she could apply the 40% reduction for contributions made prior to 2007 and the disability exemption. The Directorate General for Taxes (DGT) ruled that the deadline for the reduction expired in 2019 and that the disability exemption does not apply if the contributions were made under the general regime.

The question raised

1. Possibility of applying the 40 percent reduction to the portion of the benefit received corresponding to contributions made before 2007.

The DGT's ruling

The 40% reduction for contributions made until 2006 can only be applied if the benefit is received in the tax year of the contingency or in the two following years. As the death occurred in 2017, the period for applying said reduction ended on December 31, 2019. On the other hand, the exemption for persons with disabilities only applies if the contributions were made to plans established specifically for that regime, not for contributions from the general regime even if a disability exists at the time of collection.

Book your free first meeting