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V2003-23 11 July 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

The deadline to apply the 40% reduction on pension plans ends on December 31, 2024, if collected early

A person who underwent a collective redundancy wishes to know when the deadline expires to apply the 40% reduction for contributions made prior to 2007. The DGT responds that, by collecting retirement benefits early due to the redundancy, the contingency occurs at the moment of labor 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 collected early, the contingency occurs when the requirements for said collection are met (labor termination due to collective redundancy and unemployment status). For contingencies occurring in 2022, the transitional 40% reduction regime can only be applied to benefits received until December 31, 2024. The reduction applies to the lump-sum portion of the benefit corresponding to contributions made until December 31, 2006.

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