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V1311-14 14 May 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos íntegros del trabajo

40% reduction on retirement lump sums applicable only if two specific conditions are met

A retiree inquired whether they could apply the 40% reduction to a lump sum received from their company upon retirement. The DGT has ruled that this is only possible if two specific timing requirements are satisfied.

The question raised

Possibility of applying the reduction provided for in Article 18.2 of Law 35/2006.

The DGT's ruling

To apply the 40% reduction on gross employment income, there must be a generation period exceeding two years. This requires that the employee has a minimum seniority of two years in the paying entity and that the agreement or contract establishing the right to payment also has a term exceeding two years. The data provided does not allow for confirmation of whether these conditions are met.

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