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V3179-20 22 October 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

The 40% reduction for pre-2007 contributions depends on receiving the benefit within the transitional period following the contingency

An unemployed taxpayer wishes to redeem a pension plan with contributions made prior to 2007 to apply the 40% tax reduction. The DGT has ruled that, as this is an early retirement withdrawal, the contingency occurs when the requirements for early withdrawal (unemployment) are met; therefore, the period for applying the reduction would have already expired.

The question raised

Possibility of applying the 40 percent reduction.

The DGT's ruling

If the retirement benefit is received in advance, the contingency occurs when the requirements for said advance payment are met, such as the termination of the employment relationship and the transition to unemployment status. To apply the 40% reduction on contributions made prior to 2007, the benefit must be received within the timeframes established in the twelfth transitional provision. If the contingency occurred in 2017, the period for applying the transitional regime ended on December 31, 2019.

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