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V1345-16 31 March 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

The 40% Income Tax reduction on pension plans can only be applied within a single tax period

The inquirer asks whether the 40% reduction can be applied to pension plan benefits in a future tax year after having used it in another. The Directorate General for Taxes (DGT) responds that the reduction can only be applied once per tax period to contributions made up to 2006.

The question raised

Right to re-apply the 40 percent reduction to the remaining rights received from the pension plan in a future fiscal year, following access to retirement.

The DGT's ruling

The 40% reduction for lump-sum payments may only be granted to amounts received within the same tax period. The tax treatment refers to the set of pension plans of the same participant and of the same contingency. Therefore, if the reduction has already been applied in one year, it may not subsequently be applied to other amounts received in different years, even if they are in the form of a lump sum.

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