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V1767-22 26 July 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

Collective retirement insurance benefits are ineligible for 40% or 30% tax reductions

A taxpayer inquired whether tax reductions could be applied to a retirement benefit received from a collective insurance policy contracted in 2012. The Directorate General for Taxes (DGT) ruled that the 40% reduction cannot be applied as the contract post-dates 2006, nor can the 30% reduction be applied because these types of benefits are specifically excluded from such relief.

The question raised

Taxation of the benefit. Possibility of applying any reduction.

The DGT's ruling

Benefits from collective insurance policies that establish pension commitments are classified as income from employment. The 40% reduction does not apply because the insurance was contracted in November 2012, which falls outside the transitional regime for contracts entered into prior to January 2006. Furthermore, the 30% reduction for irregular income is not applicable, as Article 18 of the LIRPF expressly excludes from this reduction the benefits referred to in Article 17.2.a).5ª.

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