Provision of economic rights and taxation of the insured annuity

Provision of economic rights

In the event of disposal, in whole or in part, by the taxpayer before the constitution of the life annuity, the accumulated economic rights will be taxed in accordance with the provisions of the Personal Income Tax Law in proportion to the disposition made. For these purposes, the amount recovered will be considered to correspond to the premiums paid in the first place, including their corresponding profitability.

Policyholders of individual systematic savings plans may, by unilateral decision, mobilize their mathematical provision to another individual systematic savings plan of which they are policyholders. The total or partial mobilization of one systematic savings plan to another will follow, to the extent applicable, the procedure relating to insured pension plans (Fifth Additional Provision Personal Income Tax Regulation).

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 the Personal Income Tax Law.

Taxation of insured annuity

1. The profitability that is evident in the constitution of the insured annuity (difference between the current actuarial value of the income and the sum of the premiums paid) is exempt from personal income tax , in accordance with the provisions of article 7.v) of the Personal Income Tax Law.
2. The life annuity received will be taxed in accordance with the percentages established for immediate annuities included in this same Chapter.