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V1580-22 30 June 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de pensiones

The 40% reduction for pre-2007 contributions is subject to timing based on the contingency

A taxpayer asks whether the 40% reduction for contributions made before 2007 can be applied when receiving pension plan benefits due to long-term unemployment. The Directorate General of Taxes (DGT) rules that if the payment is due to early retirement, the contingency occurs when the requirements for such retirement are met, meaning the deadline to apply the reduction has already expired.

The question raised

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

The DGT's ruling

If the retirement benefit is received in advance, the contingency occurs when the requirements to receive it are met (such as collective redundancy and legal unemployment). To apply the 40 percent reduction on contributions made prior to 2007, the benefit must be received within the time limits set forth in the twelfth transitional provision. In this case, as the requirements were met in 2012, the period for applying the reduction expired on December 31, 2020.

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