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V1338-24 7 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Deadline for applying the 40% pension plan reduction depends on when the contingency occurs

A query was raised regarding whether the 40% reduction under the transitional regime can be applied following a collective redundancy in 2018. The DGT ruled that if an early retirement benefit is collected, the contingency occurs at the time of dismissal, and the deadline for the reduction expires based on the date of that event.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits constitute earned income. If early retirement benefits are received following a collective redundancy, the contingency occurs when the requirements for said payment are met. To apply the 40% reduction on contributions made prior to 2007, the payment must be made within the timeframes established in the twelfth transitional provision. If the contingency occurred in 2018 due to dismissal, the period for applying the reduction expired on December 31, 2020.

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