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V2187-22 19 October 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

The 40% reduction for contributions made before 2007 can only be applied in a single tax year

The taxpayer inquired about the timeframe for applying the 40% reduction to pension plan benefits for contributions made up to 2006. The Directorate General for Taxes (DGT) ruled that this reduction may only be applied to lump-sum payments received within the same tax period, at the taxpayer's discretion.

The question raised

Period for applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

The 40% reduction for contributions made until December 31, 2006, may only be granted to amounts received as capital within the same tax period. The taxpayer may choose in which year to apply it, but the remaining amounts received in other tax years shall be taxed without said reduction. The period for receiving benefits and accessing the transitional regime depends on the tax year in which the retirement contingency occurs.

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