Immediate temporary income (Article 25,3 of the Act)
In the case of immediate temporary income, the result of applying the following percentages to each annuity will be considered as capital gains:
- 12%, When the income lasts less than or equal to five years. 100
- 16%, When the income lasts more than five years or less. 100
- 20%, When the income lasts more than ten years or less. 100
- 25% For 100, when the income lasts more than fifteen years.
Deferred temporary income (art. 25,3. A) 4 Act)
When deferred temporary income is received, the result of applying the corresponding percentage of the aforementioned capital gains to each annuity will be considered as capital gains, increasing the return obtained until the constitution of the income.
If the income has been acquired by donation or any other legal business, free and inter vivos, the return on movable capital will be, exclusively, the result of applying the corresponding percentage of those indicated above to each annuity.
Return (art. 18 of the Act)
When deferred income is received, the return obtained until the constitution of the income will be taxed in accordance with the following rules:
The return will be determined by the difference between the current financial-actuarial value of the income that is constituted and the amount of the premiums paid.
This return will be distributed on a straight-line basis during the first 10 years of life annuity payments. If it is a temporary annuity, it will be distributed on a straight-line basis between the years of its duration and the maximum of 10 years.