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V4864-16 11 November 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Retirement contingency occurs upon accessing partial retirement if benefit payments commence

The inquirer asks when the retirement contingency is deemed to have occurred for the purpose of applying a 40% reduction to pension plan payouts. The Directorate-General for Insurance and Pension Funds (DGT) responds that if retirement benefits are collected upon entering partial retirement, the contingency is considered to have occurred at that moment.

The question raised

If the pension plan benefit is received as a lump sum and for the purposes of applying the 40 percent reduction provided for in the transitional regime, when is the retirement contingency considered to have occurred.

The DGT's ruling

The retirement contingency occurs, as a general rule, upon accessing full retirement. However, if the retirement benefit is collected or the collection of the retirement benefit is initiated prior to full retirement, the retirement contingency is considered to have occurred at the time of accessing partial retirement. This is relevant for determining the period in which benefits may be received to apply the transitional regime.

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