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V2233-20 1 July 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Possibility of applying the 40% reduction independently to pension plan and mutual insurance benefits

The inquirer asks whether the 40% reduction can be applied to retirement benefits from both a pension plan and a social welfare mutual insurance scheme. The Directorate General for Taxes (DGT) responds that the reduction applies independently to each benefit, provided it is received within the established timeframes.

The question raised

Possibility of applying the 40 percent reduction to the benefits received from both social welfare systems as a result of the occurrence of the retirement contingency.

The DGT's ruling

Benefits from pension plans and social welfare mutual funds are considered earned income. If received as a lump sum or a mixed payment, the 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006. This reduction is applied independently to the benefit from the pension plan and to that from the mutual fund. To this end, the benefits must be received within the period established in the twelfth transitional provision of Law 35/2006.

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