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V2810-23 16 October 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

40% pension plan reduction applicable until 31 December 2026 if full retirement occurs in 2024

A taxpayer inquired about the deadline for applying the 40% reduction on contributions made prior to 2007 in cases of early retirement where benefits are not collected until full retirement. The Directorate General of Taxes (DGT) clarified that while the retirement contingency occurs upon initial retirement, if no benefits are drawn until full retirement, the latter determines the applicable deadline.

The question raised

Period for applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

The retirement contingency occurs, as a general rule, upon accessing initial retirement. However, if the collection of the benefit is not initiated prior to total retirement, the contingency is understood to have occurred at the moment of access to total retirement. In this case, as total retirement occurs in 2024, the period for applying the 40% reduction for contributions made prior to 2007 expires on December 31, 2026.

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