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Practical manual for Income Tax 2022.

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

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

New: As of January 1, 2022, the transitional regime will not apply to benefits received as a result of contingencies that occurred in the years 2013 and earlier.

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. 

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

However, if the benefits are 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 for applying the reduction, provided that the requirements are met.

  • 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 2014

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

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.