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V3422-20 25 November 2020 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de pensiones

Special pension scheme for disability: election must precede contributions

A taxpayer inquired whether they could apply reductions for pension plan contributions and how benefits are taxed after acquiring a disability. The Directorate General for Taxes (DGT) ruled that the special regime must be selected before making contributions; therefore, it cannot be applied retroactively to contributions made under the general regime.

The question raised

Possibility of applying the reduction provided for in Article 53 of Law 35/2006 for contributions made to the pension plan. Taxation of benefits received in the event that the consolidated rights thereof are exercised.

The DGT's ruling

The application of the special tax regime for persons with disabilities requires prior election of the special financial regime. If contributions were made under the general regime, they cannot benefit from the special regime or the exemption provided in Article 7.w) of the LIRPF. Pension plan benefits are always considered earned income. The 40% reduction for contributions made prior to 2006 is only applicable within the limits and timeframes established by the twelfth transitional provision.

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