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Form 100. Personal Income Tax Declaration 2019

Individual systematic savings plans

They are configured as contracts entered into with insurance entities to constitute an insured life annuity with the resources provided.

Requirements

  1. They will be implemented through individual life insurance in which the contracting party, insured and beneficiary is the taxpayer himself.

  2. The life annuity will be constituted with the economic rights from said life insurance policies. In life annuity contracts, reversal mechanisms or certain benefit periods or counterinsurance formulas can be established in the event of death once the annuity has been established. In order to ensure that the application of the exemption provided for in article 7.v) of the Personal Income Tax Law meets the intended purpose, contracts entered into after April 1, 2019 are required to establish mechanisms of reversion, certain benefit periods or counterinsurance formulas in the event of death, compliance with a series of requirements (Additional Provision Ninth Regulation Personal Income Tax )

  3. In the case of anticipation, total or partial, of the economic rights derived from the life annuity established, the taxpayer must integrate into the tax period in which the anticipation occurs, the income that was exempt by application of the provisions of the letter v) of article 7 of this Law. In order to ensure that the application of the exemption provided for in article 7.v) of the Personal Income Tax Law meets the intended purpose, contracts entered into after April 1, 2019 are required to establish mechanisms of reversion, certain benefit periods or counterinsurance formulas in the event of death, compliance with the following requirements (Additional Provision ninth Personal Income Tax Law)

  4. Life insurance eligible for this contractual formula will not be group insurance that implements pension commitments in accordance with the first Additional Provision of the Consolidated Text of the Law on the Regulation of Pension Plans and Funds, nor social security instruments that reduce the tax base of the tax.

  5. The conditions of the contract will expressly and prominently state that it is a systematic individual savings plan and its acronyms are reserved for contracts that meet these requirements.

  6. The first premium paid must be more than five years old at the time of the creation of the annuity.

Limits

The maximum annual limit paid in terms of premiums for this type of contract will be 8,000 euros, and will be independent of the contribution limits of social security systems. Likewise, the total amount of premiums accumulated in these contracts may not exceed the total amount of 240,000 euros per taxpayer.

Taxation

The life annuity received will be taxed as capital capital applying the percentages of immediate annuities.