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V3234-17 15 December 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · jubilación activa

The retirement contingency for applying the 40% reduction may be the moment full pension payments are reinstated

A query was made regarding the deadline for applying the 40% reduction to benefits from pension plans with contributions made prior to 2007. The DGT explains that the retirement contingency occurs upon accessing initial retirement or, if the plan benefit is not collected during active retirement, when the full pension payment is reinstated.

The question raised

What is the final year for the application of the 40 percent reduction.

The DGT's ruling

The retirement contingency occurs, as a general rule, at the time of accessing initial retirement. However, if the collection of the pension plan benefit is not initiated while active retirement lasts, the contingency shall be understood to occur at the moment when the full collection of the Social Security retirement pension is reinstated. The period for applying the transitional regime will depend on the date on which said contingency is understood to have occurred.

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