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V1701-21 2 June 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The 30% reduction for retirement pension arrears recognized by judicial ruling may be applied

A taxpayer asks whether retirement pension arrears following a judicial ruling are eligible for the 30% reduction and whether legal fees are deductible. The DGT determines that arrears are imputed to the year in which the ruling becomes final and that the 30% reduction is applicable as the generation period exceeds two years.

The question raised

Question posed: Application of the 30 percent reduction under article 18.2 of Law 35/2006 and deductibility of legal fees.

The DGT's ruling

Social Security pension arrears recognized by judicial ruling must be imputed to the period in which the ruling becomes final. Although art. 18.2 of the LIRPF excludes pensions from the reduction for generation periods exceeding two years, following the unification of criteria by the TEAC, this reduction is applicable to pensions recognized judicially that cover more than two years. Legal defense expenses arising from litigation with the paying entity are deductible up to a limit of 300 euros per year.

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