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V4241-16 3 October 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · base imponible general

Contributions to a new pension scheme can reduce the IRPF taxable base before retirement

The inquirer asks whether contributions to a second pension scheme are deductible and when benefits can be collected. The Tax Agency responds that contributions can reduce the IRPF taxable base subject to certain limits, and that the method of collection falls under the jurisdiction of the Insurance and Pension Funds regulator.

The question raised

Whether contributions to the second pension plan may be subject to reduction in Personal Income Tax for the 2016 and 2017 fiscal years. The date from which the benefit of the second pension plan may be collected due to the contingency of retirement.

The DGT's ruling

Contributions to pension plans may reduce the general taxable base of Personal Income Tax (IRPF) if they comply with retirement regulations, pursuant to Article 51.1 of Law 35/2006. The reduction is subject to the limits set forth in Articles 50 and 52, with the maximum being the lesser of these amounts: 30% of net income from employment and economic activities, or 8,000 euros annually. The general taxable base may not result in a negative value following the reduction.

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