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V1899-19 19 July 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

The 40% reduction cannot be applied to collective insurance benefits that alter the original commitment

A taxpayer inquired whether the 40% tax reduction could be applied to collective insurance benefits resulting from the transfer of an internal pension plan. The Directorate General for Taxes (DGT) ruled that the transitional regime is not applicable because the new contract modifies the original commitment by introducing new contingencies and allowing for lump-sum payments.

The question raised

Possibility of applying the 40% reduction to the amounts to be received.

The DGT's ruling

The transitional regime of the 11th DT of the LIRPF is not applicable if the mobilization of the insurance entails a variation of the pension commitment, such as the inclusion of new contingencies or the conversion of income into capital. Furthermore, the benefits of the collective insurance provided for in art. 17.2 a) 5th of the LIRPF are excluded from the reductions of art. 18 of the same law.

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