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V2029-22 21 September 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

40% reduction on pension plan withdrawals applicable if received within the established timeframe

A taxpayer facing collective redundancy has enquired about the deadline for applying the 40% reduction when withdrawing a pension plan with contributions made prior to 2007. The Directorate General of Taxes (DGT) clarifies that, if retirement is claimed early due to unemployment, the tax contingency occurs when the requirements for that specific payment are met.

The question raised

Period for applying the 40% reduction on the redemption of the pension plan.

The DGT's ruling

If the retirement benefit is received in advance, the tax event occurs when the requirements for said payment are met, such as the termination of the employment relationship due to collective dismissal. The 40% reduction for contributions made prior to 2007 can only be applied in a single tax year. The period for applying this transitional regime depends on the tax year in which the contingency occurred, as provided in the twelfth transitional provision of the LIRPF.

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