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V5266-16 13 December 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · régimen transitorio

Application of the 40% reduction on pension plan benefits for contributions made up to 2006

The applicant asks when the retirement contingency is considered to have occurred for the purpose of applying the 40% reduction, and whether this reduction can apply solely to the portion of contributions made prior to 2007. The Directorate General for Insurance and Pension Funds (DGT) responds that the reduction applies to the part of the benefit corresponding to contributions made up to 31 December 2006, provided it is received as a lump sum or a mixed payment within the legal timeframes.

The question raised

For the purposes of applying the 40 percent reduction provided in the transitional regime, when is the retirement contingency considered to have occurred. And whether it is necessary to receive the total benefit or if only the portion of the benefit corresponding to contributions made prior to 2007 may be received.

The DGT's ruling

The 40% reduction applies to the portion of the benefit paid in a lump sum or mixed form corresponding to contributions made until December 31, 2006, provided it is received within the period established by the twelfth transitional provision. The retirement contingency generally occurs upon accessing full retirement, but if the collection of the partial retirement benefit begins, the contingency is understood to have occurred at that moment.

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