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A query is made regarding when the deadline to apply the 40% reduction for contributions made prior to 2007 expires if retirement is collected early due to collective redundancy. The DGT responds that the contingency occurs when the requirements for early withdrawal are met.
Question posed: Available period to apply the 40 percent reduction provided for in the transitional regime.
If the retirement benefit is collected early, the contingency occurs at the moment the requirements for said collection are met, such as the termination of the employment relationship due to collective redundancy. The period for applying the 40% reduction (transitional regime) is counted from the fiscal year in which said contingency occurs. In the event that the requirements are met in 2022, the period to receive the benefit with the reduction expires on December 31, 2024.
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