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V2467-24 9 December 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro colectivo

Collective retirement insurance benefits taxed as employment income and eligible for 40% reduction under transitional regime

A taxpayer queried the taxation of benefits from a collective insurance scheme used to fulfill pension commitments. The DGT ruled that these benefits are taxed as employment income and are ineligible for the 30% reduction provided under Article 18 of the LIRPF.

The question raised

1. Taxation of the benefit.

The DGT's ruling

Retirement benefits from collective insurance policies that implement pension commitments are considered earned income and are included in the general taxable base. If the contingency occurred in 2024, the transitional regime of the eleventh transitional provision may be applied to obtain a 40% reduction if received as a lump sum, provided it is received before December 31, 2026. The 30% reduction provided for in Article 18 of the LIRPF is not applicable.

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