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

Regulations: Eleventh transitional provision.3 and twelfth transitional provision.4 Law PIT

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 in the year in which the corresponding contingency occurs, or in the two following years. 

Note: If the retirement contingency occurred in 2024, the transitional regime may be applied to benefits received in that year and in the following two years.

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.

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.