C 2. Benefits received in the form of capital derived from other private social security systems (pension plans, social security mutual societies and insured pension plans)

Regulations: transitional provision twelfth Personal Income Tax Law

Note: As of January 1, 2015, the application of the reductions of the transitional regime is limited to benefits in the form of capital that are received within the periods indicated in section " Temporary limits for the application of the reductions of the transitional regime ".

Beneficiaries of benefits derived from contingencies that occurred after January 1, 2013, can apply the reduction regime in force on December 31, 2006 but only to the part of the benefit corresponding to the contributions made up to said date (December 31 2006).

This regime consists of the possibility of applying the following reductions:

a. The 40 percent reduction in the following cases:

When more than two years have passed since the first contribution.
When they correspond to disability benefits, regardless of the period of time that has elapsed since the first contribution.

b. The 50 percent reduction for the benefits received in the form of capital by people with disabilities from the social security systems established in their favor, provided that more than two years have passed since the first contribution.

Precisions

The reduction applicable to benefits in the form of capital derived from pension plans or insured provident plans refers to all pension plans and insured provident plans subscribed by the same person and in respect of the same person. contingency .

Thus, regardless of the number of pension plans owned by a taxpayer, the possible application of the 40 or 50 percent reductions indicated above may only be granted to the amounts received in the form of capital in the same tax period. and for the part that corresponds to the contributions made until December 31, 2006. The rest of the amounts received in other years, even when received in the form of capital, will be taxed in their entirety without application of the reduction.

However, in the event of receiving in the form of capital benefits derived from a pension plan and a social security mutual fund for the same contingency, the application of the reduction will refer to the provision of the pension plan and that of the social security mutual insurance company independently.
In the case of retirement or disability benefits received from social security mutual societies , the reduction percentage is applied to the part of the full amount received corresponding to contributions made until December 31, 2006 ( for benefits derived from contingencies that occurred after January 1, 2013), except in those cases in which the full performance of the work is determined by the difference between the amount received and the contributions that could not be reduced or reduced in the tax base of Personal Income Tax .
If the pension plan benefits are received in a mixed form (income and capital), the beneficiary may freely identify or decide which part of the benefit received in the form of capital corresponds to contributions made prior to December 31, 2006, including its profitability, and which corresponds to contributions made after this date.