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V1440-23 25 May 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for 40% pension plan reduction ends 31 December 2024 if redeemed early due to dismissal

The inquirer asks about the deadline to apply the 40% reduction when redeeming a pension plan following a collective redundancy. The Directorate-General for Taxes (DGT) responds that if the benefit is redeemed early due to the termination of the employment relationship, the contingency occurs at that moment, and the deadline for applying the transitional regime is calculated from that financial year.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit due to collective redundancy is collected in advance, the contingency occurs when the requirements for early collection are met. In this case, the contingency is understood to have occurred in the fiscal year in which the employment relationship is terminated and the individual enters a state of unemployment. The period for applying the 40 percent reduction on contributions made prior to 2007 is the fiscal year of the occurrence or the two following years. For a contingency in 2022, the period ends on December 31, 2024.

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