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V2679-23 2 October 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Potential to apply 40% pension plan reduction through early retirement payments

A query was raised regarding the timeframe for applying the 40% reduction to a pension plan following a collective redundancy. The Directorate General for Insurance and Pension Funds (DGT) ruled that if early retirement is claimed, the contingency occurs once the requirements for such payment are met.

The question raised

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

The DGT's ruling

Pension plan benefits are considered earned income. If retirement is claimed early due to collective redundancy, the contingency occurs when the requirements for receiving it are met (termination of the employment relationship and unemployment). The period for applying the 40 percent reduction on contributions made prior to 2007 depends on the fiscal year in which the contingency occurs. In this case, as it occurs in 2022, the period expires on December 31, 2024.

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