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V1911-24 27 August 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for applying the 40% reduction for pre-2007 contributions ends on 31 December 2024

A taxpayer with contributions made prior to 2007 sought clarification on the expiry date for applying the 40% reduction following a collective redundancy. The Directorate General for Taxes (DGT) ruled that, when claiming early retirement due to redundancy, the contingency occurs at the moment of employment termination and unemployment.

The question raised

Question posed: Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit is received early, the contingency occurs when the requirements for early collection are met, such as the termination of the employment relationship due to collective redundancy and the transition to a state of unemployment. To apply the 40% reduction on contributions made up to 2006, the benefit must be received in the fiscal year of the occurrence or in the two following years. In this case, as the contingency occurred in 2022, the deadline to apply the transitional regime expires on December 31, 2024.

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