Skip to content
Back to index
V1281-24 4 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for applying the 40% reduction on pension plans through early retirement payments

A consultant with contributions made prior to 2007 wishes to redeem their pension plan following a collective redundancy. The DGT clarifies that, if the plan allows for early withdrawal due to redundancy, the retirement contingency occurs at the moment of employment termination and unemployment, thereby determining the deadline for the reduction.

The question raised

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

The DGT's ruling

If the retirement benefit is collected in advance following a collective redundancy and a transition to unemployment, the contingency is deemed to have occurred at that moment. To apply the 40% reduction on contributions made prior to 2007, the benefit must be received in the tax year of the occurrence or in the two following years. In the specific case, as the contingency occurred in 2022, the period to apply the reduction ends on December 31, 2024.

Book your free first meeting