Skip to content
Back to index
V1811-18 20 June 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Retirement contingency for the 40% reduction occurs upon termination of employment if early withdrawal is initiated

The inquirer asks when the retirement contingency is deemed to have occurred for the purpose of applying a 40% reduction to a pension plan following dismissal. The Directorate General for Taxes (DGT) responds that, if the benefit is withdrawn early, the contingency occurs once the requirements for such withdrawal are met—specifically, upon the termination of the employment relationship and the transition to unemployment.

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. Whether the date is that of the dismissal, that of the application for the early collection of the retirement benefit, or the date of retirement in the Social Security system, if the lump-sum redemption were to take place at that time.

The DGT's ruling

To apply the 40% reduction under the transitional regime, the retirement contingency generally occurs upon accessing retirement through the Social Security system. However, if the early collection of the benefit is initiated, the contingency is understood to have occurred at the moment the requirements for early collection are met, that is, upon the termination of the employment relationship due to collective dismissal and the transition to a legal status of unemployment.

Book your free first meeting