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V1495-17 13 June 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

The 40% pension plan reduction can only be applied once per contingency and within a single tax period

The inquirer asks whether the 40% reduction can be applied to an occupational pension plan for contributions made prior to 2007. The DGT rules that if this reduction has already been applied in a previous tax year for the same contingency, it cannot be applied again.

The question raised

Whether the 40 percent reduction is applicable again to the benefit received as a lump sum from the occupational pension plan, regarding the portion corresponding to contributions made prior to 2007.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction for contributions made until December 31, 2006, may only be applied to amounts received as a lump sum within the same tax period. If the reduction was already applied in a previous fiscal year for the same contingency, it may not be applied subsequently. The retirement contingency occurs when retirement is accessed or when the requirements for early withdrawal are met.

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