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V2766-19 9 October 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

The 40% reduction for retirement contingency may only be applied once for the same contingency

The inquirer asks whether the 40% reduction for contributions made prior to 2007 can be applied at two different times: first due to unemployment and subsequently due to retirement. The DGT rules that if the retirement benefit is collected early following a dismissal, the contingency is deemed to have occurred at that moment, and the reduction cannot be applied again for the same contingency.

The question raised

Possibility of applying the 40 percent reduction in the event of unemployment as a consequence of collective redundancy and for the retirement contingency, when the latter occurs in a subsequent fiscal year.

The DGT's ruling

If the retirement benefit is paid in advance upon the termination of the employment relationship due to collective redundancy, the retirement contingency is understood to have occurred at that moment. Therefore, if the 40% reduction is applied in such a case, it may not be applied subsequently for the same contingency. The 40% reduction can only be granted once for amounts received as a lump sum within the same tax period for the portion of contributions made up to 2006.

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