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V2483-17 4 October 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de pensiones

40% pension plan reduction applicable until 31 December 2018

A taxpayer who made contributions to pension plans before 2007 and retired in 2008 enquired about the deadline for applying the 40% reduction. The Directorate General of Taxes (DGT) ruled that, as the contingency occurred in 2008, the deadline to apply this transitional regime expires on 31 December 2018.

The question raised

What is the final year for the application of the 40 percent reduction.

The DGT's ruling

According to the twelfth transitional provision of Law 35/2006, for contingencies occurring in the 2010 financial years or earlier, the transitional regime may only be applied to benefits received until December 31, 2018. Given that the retirement occurred in 2008, this is the time limit for applying the 40 percent reduction.

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