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V1332-25 16 July 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

IRPF retention on assured pension withdrawal applies to gross amount

The consultant asks whether IRPF retention on an assured pension withdrawal should be applied on the gross amount without deducting the 40 per cent reduction. The tax authority responds that although the reduction is used to calculate the retention rate, the resulting percentage is applied to the full amount of the pension received.

The question raised

Calculation of the withholding tax corresponding to the benefit. Specifically, whether the withholding is applied to the gross amount without the application of the 40 percent reduction.

The DGT's ruling

Benefits from insured pension plans are considered income from employment. To determine the withholding tax rate, the total amount of remuneration must be reduced by the 40 percent reduction provided for in the twelfth transitional provision of the Personal Income Tax Law (LIRPF). However, the resulting withholding rate shall be applied to 100 percent of the benefit, as this is the amount actually received.

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