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V2676-23 2 October 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Deadline for 40% pension plan reduction ends 31 December 2024 if redeemed early due to dismissal

The inquirer asks about the deadline to apply the 40% reduction when redeeming a pension plan following a collective redundancy. The DGT rules that if the benefit is redeemed early due to the termination of the employment relationship, the contingency occurs at that moment, and the period to apply the reduction expires within the following two tax years.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit due to collective redundancy and unemployment is received in advance, the contingency occurs when those requirements are met. To apply the 40% reduction on contributions made prior to 2007, the benefit must be received during the fiscal year of the occurrence or in the two following years. In this case, as the contingency occurs in 2022, the period expires on December 31, 2024.

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