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V1283-23 16 May 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for applying the 40% reduction on early pension plan withdrawals ends in 2024

A taxpayer inquired about the deadline to apply the 40% reduction for contributions made prior to 2007 following a collective redundancy. The Directorate General of Taxes (DGT) ruled that, when taking early retirement, the contingency occurs once the requirements for such payment are met.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit due to collective redundancy is paid in advance, the contingency occurs when the requirements for early payment cease to exist. In this case, as it is fulfilled in January 2022, the period to apply the 40% reduction on contributions made prior to 2007 expires on December 31, 2024. The reduction applies to the portion of the benefit received as a lump sum corresponding to contributions made until December 31, 2006.

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