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V2755-21 10 November 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de previsión asegurado

40% reduction applicable to benefits from pension plans with contributions made up to 2006

A beneficiary of an insured pension plan following a death has enquired whether the 40% tax reduction can be applied. The Directorate General for Taxes (DGT) has ruled that this is possible for the portion of the benefit corresponding to premiums paid up to 31 December 2006, provided that all legal deadlines and requirements are met.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Benefits from insured pension plans are considered income from employment. If received as a lump sum, the 40% reduction may be applied to the portion of the benefit corresponding to contributions made until December 31, 2006. To this end, more than two years must have elapsed since the first contribution to the set of plans covering the contingency, and the benefit must be received within the period established by the twelfth transitional provision. This reduction may only be applied once, within the same tax period, at the taxpayer's discretion.

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