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V1283-24 4 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for applying the 40% pension plan reduction following early retirement payments

A taxpayer 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 retirement payments following redundancy, the contingency occurs in the year of unemployment, which determines the deadline for the reduction.

The question raised

Period for applying the 40 percent reduction in Personal Income Tax.

The DGT's ruling

If the retirement benefit is paid in advance following a collective redundancy, the contingency is understood to have occurred when the requirements for said payment are met. For contributions made until December 31, 2006, the 40% reduction may be applied if the benefit is received in the tax year of occurrence or in the two following years. In the case of a contingency occurring in 2022, the period for applying the reduction ends on December 31, 2024.

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