Skip to content
Back to index
V1355-18 23 May 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Possibility of applying the 40% reduction to a pension plan lump sum payment received in 2018

The inquirer asks whether the 40% reduction can be applied to a pension plan lump sum payment in 2018 for contributions made up to 2006. The DGT responds that this is possible provided the time limit and contribution requirements are met, but warns that this reduction can only be applied once per tax period.

The question raised

Possibility of applying the 40 percent reduction to the capital received from the pension plan in 2018, for the portion corresponding to contributions made until December 31, 2006.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that the terms of the twelfth transitional provision are met. This reduction may only be granted to amounts received as a lump sum within the same tax period, at the taxpayer's discretion. For contingencies occurring in 2010 or earlier, the transitional regime may only be applied to benefits received until December 31, 2018.

Book your free first meeting