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V2215-16 23 May 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Lump-sum pension plan benefits may qualify for a 40% reduction for contributions made up to 2006

The tax treatment of pension plan benefits involving contributions made both before and after 2006 is examined. The DGT clarifies that the portion corresponding to contributions made until 31 December 2006 may benefit from a reduction if received as a lump sum.

The question raised

Tax treatment of the benefit.

The DGT's ruling

If the benefit is received as a lump sum, a 40% reduction may be applied to the portion of the benefit corresponding to contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution. This reduction can only be applied to amounts received as a lump sum in a single year, regardless of the number of pension plans held by the taxpayer. The remaining amounts from the set of pension plans shall be taxed as income without reduction.

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