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V1303-23 16 May 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · reducción del 40%

Deadline for 40% pension plan reduction ends 31 December 2024 if early retirement is claimed due to redundancy

A query was raised regarding the deadline to apply the 40% tax reduction for contributions made prior to 2007 following a collective redundancy. The Directorate General for Taxes (DGT) clarified that if retirement benefits are claimed early due to redundancy, the contingency is deemed to have occurred in the year of the dismissal.

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 received in advance, the contingency occurs when the requirements for said payment are met. The period for applying the 40% reduction on contributions made prior to 2007 is the fiscal year of the contingency and the two following years. In the case of redundancy and unemployment in 2022, the period expires on December 31, 2024.

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