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

The possibility of applying the reductions of the transitional regimes discussed in sections 1 and 2 above (both from the derivative collective insurance contracts that implement pension commitments and from 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 in the year in which the corresponding contingency occurs, or in the two following years. 

Note: If the retirement contingency has occurred in 2023, the transitional regime may be applied to the benefits received that year and in the following two years.

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.

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.