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V1280-24 4 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for 40% pension plan reduction (pre-2007 contributions) ends 31 December 2024 if contingency occurred in 2022

The inquirer asks about the deadline to apply the 40% reduction to their pension plan following a collective redundancy. The DGT rules that, when taking early retirement due to redundancy, the contingency occurs in the year of unemployment, setting the deadline for the reduction to the fiscal year following the second year after the contingency.

The question raised

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

The DGT's ruling

If the retirement benefit due to collective redundancy is collected in advance, the contingency occurs when the requirements for early collection are met. For contributions made until December 31, 2006, the 40 percent reduction is applicable if the benefit is received in the year of occurrence or in the two following years. In this case, as the contingency occurs in 2022, the period for applying the reduction ends on December 31, 2024.

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