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V1355-24 7 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

40% IRPF reduction applicable if early retirement benefits are received as a lump sum

A taxpayer inquired whether they could claim their long-term unemployment pension plan while applying the 40% tax reduction. The Directorate General for Taxes (DGT) ruled that if the requirements for early retirement are met, it is classified for tax purposes as a retirement contingency rather than an unemployment one.

The question raised

Possibility of exercising the consolidated rights of the pension plan due to the contingency of long-term unemployment and applying the 40 percent reduction in Personal Income Tax.

The DGT's ruling

If retirement can be received in advance, for tax purposes, the contingency is understood to occur when the requirements for said early collection are met. The 40% reduction is applicable to the portion of the benefit corresponding to contributions made until December 31, 2006, provided that it is received as a lump sum and within the timeframes of the twelfth transitional provision. If several lump-sum withdrawals are made for the same contingency, the reduction may only be applied to one of them.

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