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V5157-16 29 November 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · derechos consolidados

The 40% reduction for contributions made before 2007 can only be applied within a single tax period

The taxpayer inquired whether the 40% reduction could be applied across two different years: first for long-term unemployment and subsequently for retirement. The Directorate-General for Taxes (DGT) ruled that if both scenarios occur, the benefit is fiscally treated as being received due to retirement, meaning the reduction can only be utilised once.

The question raised

Possibility of applying the 40 percent reduction in two different years, the first as a consequence of the collection of consolidated rights due to an exceptional liquidity event and subsequently due to the retirement contingency, for the portion corresponding to contributions made before the year 2007.

The DGT's ruling

If the requirements for payment due to exceptional liquidity and due to contingency are simultaneously met, for tax purposes, the benefit is perceived due to the contingency. The 40% reduction for contributions made until December 31, 2006, can only be applied to amounts received as capital within the same tax period. Therefore, it is not possible to apply said reduction in different years for the same contingency.

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