C 3. Time limits for the application of reductions under the transitional regime

Regulations: eleventh transitional provision.3 and twelfth transitional provision.4 Law IRPF

New: from January 1, 2020, the transitional regime will not apply to benefits received as a result of contingencies that occurred in the years 2011 and previous years.

As of January 1, 2015 the possibility of applying the reductions of the transitional regimes discussed in sections 1 and 2 above (both those derived from collective insurance contracts that implement pension commitments and those derived from pension plans, social welfare mutual funds and insured pension plans), is conditional on the benefits being received in the form of capital within a certain period, the end of which depends on the year in which the contingency occurs. Thus:

• Benefits arising from contingencies occurring after January 1, 2015

  The transitional regime will apply, where appropriate, to benefits received in the year in which the corresponding contingency occurs, or in the two following years.

• Benefits arising from contingencies that occurred in the years 2012 to 2014

  The transitional regime may only be applied, where applicable, to benefits received until the end of the eighth financial year following the year in which the corresponding contingency occurred.

Note: If the benefit in the form of capital is received after these periods have ended, the taxpayer will not be able to apply any reduction for this concept.