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V3161-19 13 November 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

The 40% pension plan reduction requires receiving benefits within the legal timeframe following the contingency

A consultant seeks to know whether the 40% reduction can be applied when collecting a pension plan early due to unemployment. The DGT clarifies that if the collection is due to early retirement, the contingency occurs upon the termination of the employment relationship, and the deadline to apply the reduction depends on that date.

The question raised

Possibility of applying the 40 percent reduction.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, the 40% reduction may be applied to the portion of contributions made until December 31, 2006, provided that the terms of the twelfth transitional provision are met. In the case of early retirement, the contingency occurs when the requirements for early collection are met, i.e., upon the termination of the employment relationship and entering a state of unemployment.

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