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V2175-24 9 October 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

40% pension plan reduction can be applied until 31 December 2026

A taxpayer enquired about the deadline for applying the 40% reduction to pension plan benefits derived from contributions made prior to 2007 upon retirement. The Directorate-General for Taxes (DGT) ruled that, having retired in 2024, the individual has until the end of 2026 to receive the benefits and apply this transitional regime.

The question raised

1. Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

To apply the 40% reduction to contributions made until December 31, 2006, the benefit must be received in the fiscal year in which the contingency occurs or in the two following years. The retirement contingency occurs upon accessing retirement under the Social Security regime. If the contingency occurs in 2024, the period for applying the transitional regime ends on December 31, 2026.

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