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V2561-19 19 September 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · jubilación parcial

Deadline for applying 40% pension plan reduction depends on the year retirement contingency occurs

A query was raised regarding the deadline for applying the 40% reduction for contributions made prior to 2007, following a period of partial retirement followed by full retirement. The Directorate-General for Insurance and Pension Funds (DGT) ruled that the deadline depends on when the retirement contingency is deemed to have occurred.

The question raised

Period for applying the 40 percent reduction to the amount received as a lump sum, corresponding to the portion of contributions made before 2007.

The DGT's ruling

The retirement contingency occurs, as a general rule, upon accessing full retirement. However, if the collection of the benefit begins earlier, the contingency is considered to occur upon accessing partial retirement. The period for applying the 40% reduction depends on the fiscal year in which said contingency occurs, according to the limits established in the twelfth transitional provision of Law 35/2006.

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