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V1775-20 4 June 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

40% tax reduction inapplicable to collective insurance benefits contracted in 2012

A taxpayer inquired whether the 40% tax reduction could be applied to capital received from a collective retirement insurance policy. The Directorate General for Taxes (DGT) ruled that, as the insurance was contracted in 2012, it does not qualify for the transitional regime that allows for such a reduction.

The question raised

Possibility of applying the 40 percent reduction to the capital received from the collective insurance for the retirement benefit.

The DGT's ruling

The 40% reduction for benefits paid in a lump sum is only applicable through the transitional regime of the eleventh transitional provision of Law 35/2006. This regime exclusively covers collective insurance policies contracted prior to January 20, 2006. As the contract is the subject of the inquiry dated September 2012, the application of said reduction is not appropriate.

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