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V1196-23 9 May 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

Deadline for 40% pension plan reduction ends 31 December 2024 if collected early due to redundancy

An individual affected by collective redundancy sought clarification on the deadline to apply the 40% reduction for contributions made prior to 2007. The Directorate General of Taxes (DGT) ruled that, when benefits are collected early due to redundancy, the contingency is deemed to have occurred at that moment, and the period to apply the reduction expires within the following two tax years.

The question raised

Question posed: Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit is received early due to the termination of the employment relationship and legal unemployment, the contingency occurs when those requirements are met. To apply the 40% 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 the case of a dismissal in 2022, the deadline to apply the transitional regime expires on December 31, 2024.

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