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V1266-17 24 May 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction applicable to pension plan and mutual fund benefits for contributions made up to 2006

The inquirer asks about the application of the 40% reduction to benefits from pension plans and mutual funds. The DGT clarifies that this reduction applies to the portion of benefits corresponding to contributions made up to 31 December 2006, provided they are received as a lump sum and within the legal timeframes.

The question raised

Application of the 40 percent reduction to the amounts received.

The DGT's ruling

The 40% reduction is applicable to benefits received as a lump sum (or the portion of the mixed benefit received as a lump sum) corresponding to contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution and they are received within the period specified in the twelfth transitional provision. This reduction can only be applied to amounts received as a lump sum in the same tax period, at the taxpayer's discretion, for the portion of contributions made up to 2006. Benefits received as an annuity cannot benefit from this reduction. The reduction applies independently to pension plans and social welfare mutual funds.

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