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V4522-16 19 October 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de previsión asegurados

40% reduction on insured pension plans applicable until 2022 if contingency occurred in 2014

A taxpayer inquired which contingency date should be used to apply the 40% reduction to an insured pension plan after transitioning from permanent disability to retirement at age 65. The Directorate General of Taxes (DGT) ruled that the relevant contingency is retirement and, since this occurred in 2014, the transitional regime allows the reduction to be applied until the 2022 tax year.

The question raised

Date of the contingency to be considered for determining the last fiscal year in which the 40 percent reduction may be applicable

The DGT's ruling

Benefits from insured pension plans are considered income from employment. If received as a lump sum, the 40% reduction may be applied to the portion of contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution. For contingencies occurring in 2014, the transitional regime allows for the application of this reduction to benefits received until the end of the 2022 fiscal year.

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