The changes introduced by the tax reform will also affect pension plans. Taxpayers enjoy a deduction in their income tax return for contributions made to pension plans, both their own and those of their spouse (in the latter case, only if certain circumstances apply).
The Government has limited the annual contribution to pension plans to 8,000 euros , regardless of the participant's age. Until now, the maximum contribution with the right to deduction was 10,000 euros or for those over 50 years of age. From this amount, the equivalent of 30% of the sum of the net income from work denmark whatsapp mobile phone number list and economic activities received individually in the year is deducted (or 50% if the participant is over 50 years of age).
Changes are also being introduced regarding the redemption of the plan . Until now, pension plans could only be recovered in the event of retirement, death, dependency or incapacity or one of the exceptional cases: serious illness, long-term unemployment or temporary eviction.
The tax reform introduces an important novelty: contributions made after January 1, 2015 can be redeemed when they are 10 years old, that is, on January 1, 2025. Previous contributions can be redeemed from January 1, regardless of their age.
We remind you that pension plans can be collected year by year in the form of work income or in one go, in which case they are taxed as capital gains. In the latter case, current legislation gives the right to a 40% reduction applicable to contributions made prior to 1 January 2006. This reduction will be increased to 30% with the tax reform.
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