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 Law Personal Income Tax

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, 2014, 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 that 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 those received with respect to the same contingency .

When benefits are received from various pension plans, the reductions of 40 or 50 percent indicated above may be applied to all amounts received in the form of capital (single payment) in the year in which the corresponding contingency occurs and in the two following years, and not only in one year, for the part that corresponds to the contributions made until December 31, 2006. See the Resolution of the Central Economic-Administrative Court (TEAC), of October 24, 2022, Claim number 00-08719-2021, relapsed into an extraordinary appeal for the unification of criteria.
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 benefit of the plan of pensions and that of the social security mutual society 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.