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V1243-24 30 May 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · jubilación activa

The timing of retirement contingency determines the deadline for applying the 40% pension plan reduction

The inquirer asks about the deadline for applying the 40% reduction to pension plan benefits in cases of active retirement. The DGT clarifies that the retirement contingency occurs upon initial retirement or, in the case of active retirement, when full pension payments are reinstated.

The question raised

1. Available period to apply the 40 percent reduction in Personal Income Tax.

The DGT's ruling

The retirement contingency is understood to have occurred when the participant effectively accesses retirement under the Social Security regime. If a compatible pension is received through active retirement, the contingency occurs at the moment the full payment of the Social Security pension is reinstated. The period for applying the 40% reduction depends on the fiscal year in which said contingency is understood to have occurred.

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