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V1262-18 14 May 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · movilización de derechos económicos

Transferring funds from a mutual society to a pension scheme is taxed as employment income

A retired lawyer wishes to transfer funds from the Universal Plan of the Lawyers' Mutual Society to a pension scheme. The Directorate General for Taxes (DGT) has ruled that there is no regulation allowing such a transfer without tax consequences.

The question raised

Whether this transfer is subject to Personal Income Tax withholding.

The DGT's ruling

There is no regulatory development that allows for the mobilization of social welfare mutual fund rights to other social welfare instruments. Therefore, the transfer of funds from the Universal Lawyer Plan to a pension plan shall be considered income from employment. This income shall be subject to withholding in accordance with the Personal Income Tax Regulations.

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