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V1774-20 4 June 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Retirement contingency for the 40% reduction occurs upon actual access to Social Security retirement

The inquirer asks when the retirement contingency is deemed to have occurred for the purpose of applying the 40% reduction under the transitional regime. The DGT rules that the contingency occurs at the moment the participant effectively accesses retirement through the relevant Social Security scheme.

The question raised

For the purposes of applying the 40 percent reduction provided for in the transitional regime, when is the retirement contingency considered to have occurred.

The DGT's ruling

The retirement contingency is understood to have occurred when the participant effectively accesses retirement under the Social Security regime, whether in an ordinary, early, or late manner. To apply the 40% reduction from the transitional regime, the benefit must be received as a lump sum and within the timeframes established in the twelfth transitional provision of Law 35/2006. The reduction may only be applied to amounts received as a lump sum within the same tax period and for the portion of contributions made until December 31, 2006.

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