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V2680-23 2 October 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Deadline for applying the 40% reduction on pension plan withdrawals with contributions made before 2007

The inquirer asks about the deadline for applying the 40% tax reduction to a pension plan following a collective redundancy. The DGT rules that, if early retirement is claimed due to redundancy, the contingency occurs when 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 taken early due to collective redundancy, the contingency occurs when the employment relationship is terminated and the individual enters a state of unemployment. To apply the 40 percent reduction to contributions made prior to 2007, the benefit must be received during the tax year in which the contingency occurs 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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