Skip to content
Back to index
V2058-17 31 July 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction may apply to pension plan benefits derived from contributions made up to 2006

A taxpayer has enquired about calculating the amount of a pension plan benefit to qualify for the 40% reduction. The Tax Agency has clarified that this reduction applies to the portion of the benefit corresponding to contributions made until 31 December 2006.

The question raised

Calculation of the amount of the benefit to which the 40 percent reduction is applicable.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that legal deadlines and requirements are met. This reduction can only be applied once per tax year, regardless of the number of plans held by the taxpayer.

Book your free first meeting