C 3. Temporary limits for the application of reductions of the transitional regime

Regulations: Transitional provision eleventh.3 and transitional provision twelfth.4 Law Personal Income Tax

New: As of January 1, 2022, the transitional regime will not apply to benefits received as a result of contingencies that occurred in 2013 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 of the derivative collective insurance contracts that implement pension commitments as well as those derived from pension plans, social security mutual societies and insured pension plans), is conditional on the benefits being received in the form of capital within a certain period whose completion depends on the year in which the contingency occurs. 

For these purposes, it must be understood that, in general, the retirement contingency occurs at the time of accessing retirement in the corresponding Social Security regime.

However, if these are benefits received by the beneficiaries of the pension plan in the event of the death of the participant, the year in which the death occurs will determine the time limit of application of the reduction, provided that the requirements are met.

• Benefits derived from contingencies that occurred after January 1, 2015

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

• Benefits derived from contingencies that occurred in 2014

  In the case of contingencies that occurred in the years 2011 to 2014, the transitional regime may only be applicable, where applicable, to the benefits received until the end of the eighth year following the one in which the corresponding contingency occurred, therefore In 2022 it can only be applied to benefits derived from contingencies that occurred in 2014.

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