Skip to content
Back to index
V1527-24 21 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for 40% pension plan reduction expires on 31 December 2024 if early payout is due to redundancy

A person who underwent collective redundancy in 2021 and entered unemployment in 2022 inquired about the deadline to apply the 40% reduction for contributions made prior to 2007. The Directorate General of Taxes (DGT) ruled that, as early retirement is being claimed due to redundancy, the contingency occurs in 2022, meaning the deadline for the reduction expires in 2024.

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 termination of employment relationship and unemployment is received in advance, the contingency occurs at the moment those requirements are met. For the application of the transitional regime, the retirement contingency is understood to have occurred when the requirements for early collection are met. In this case, as the contingency occurred in 2022, the period for applying the 40% reduction on contributions made prior to 2007 expires on December 31, 2024.

Book your free first meeting