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V1420-22 16 June 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Potential application of 40% reduction on pension plan withdrawals for early retirement

A taxpayer with contributions made prior to 2007 wishes to withdraw their pension plan following a collective redundancy. The DGT clarifies that if the plan allows for early withdrawal due to retirement, this takes fiscal precedence over the provision for unemployment liquidity.

The question raised

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

The DGT's ruling

If the contingency of retirement (or its early collection) and a case of exceptional liquidity occur simultaneously, for tax purposes, the retirement benefit is perceived. 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 time limits of the twelfth transitional provision. Early collection due to collective dismissal is considered an occurrence of the retirement contingency.

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