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V3213-23 12 December 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Deadline for 40% pension plan reduction ends 31 December 2024 if contingency occurred in 2022

A consultant seeks clarification on the expiry date for applying the 40% reduction for contributions made prior to 2007 following a collective redundancy. The Directorate General for Insurance and Pension Funds (DGT) rules that, when taking early retirement, the contingency occurs in the year of dismissal and unemployment.

The question raised

Available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

If the retirement benefit due to collective redundancy is paid in advance, the contingency occurs when the requirements for said payment are met. For benefits derived from contingencies occurring from 2007 onwards, the 40% reduction may only be applied in the tax year of occurrence or in the two following years. In this case, as the contingency occurs in 2022, the period ends on December 31, 2024.

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