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V3172-20 22 October 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

Retirement contingency for the 40% reduction occurs upon initial retirement or restoration of full pension payments

The inquirer asks when the retirement contingency is deemed to occur for the purpose of applying the 40% reduction to a pension plan with contributions made prior to 2007. The Directorate General of Taxes (DGT) responds that, as a general rule, the contingency occurs upon initial retirement; however, in cases of active retirement, it may occur when the full pension payment is restored.

The question raised

For the purposes of applying the 40 percent reduction provided for in the transitional regime, when is the retirement contingency considered to have occurred.

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