Special case: "Unit Linked" (life insurance contracts in which the policyholder assumes the investment risk)

Regulations: Art.14.2. h) of Law Personal Income Tax

The "unit linked "are life insurance in which the policyholder can decide and modify the financial assets in which they wish to materialize the technical provisions corresponding to their insurance, assuming the investment risk. Depending on whether or not these insurance contracts meet the conditions established in article 14.2. h) of the Personal Income Tax Law , two different tax regimes may be applicable to them:

1. If any of the conditions legally established for this purpose are met during the entire term of the contract, the applicable tax regime is that of the life insurance contracts set out in the previous sections, without the transfers made between the assets suitable for materializing the investments having any fiscal relevance.
2. If none of the conditions legally established for this purpose are met during the entire term of the contract, the policyholder must allocate in each tax period as return on capital the difference between the net asset value of the assets covered by the policy at the end and at the beginning of the tax period .

   In this case, the imputed amount will reduce the performance derived from the receipt of amounts from these contracts.

Legal conditions that must be met throughout the life of the contract for the general regime of life insurance contracts to be applicable:

1. That the policyholder is not granted the power to modify the investments affected by the policy.
2. That the mathematical provisions are invested in:
   1. Shares or participations in collective investment institutions, predetermined in the contracts, provided that:
      • These are collective investment institutions adapted to Law 35/2003, of November 4, on Collective Investment Institutions ( BOE of 5).
      • These are collective investment institutions covered by Directive 2009/65/ EC , of July 13, of the European Parliament and of the Council.

        Precision: Although article 14.2.h) of the Personal Income Tax Law mentions Directive 85/611/ CE it must be indicated that it was repealed, with effect from July 1, 2011, by article 117 of Directive 2009/65/ EC which, in addition, established that references to the repealed Directive will be understood to be made to said Directive 2009/65/ EC .

   2. Sets of assets reflected separately in the balance sheet of the insurance entity, provided that the following requirements are met:
      • The determination of the assets must correspond, at all times, to the insurance entity.
      • The investment of the provisions must be made in the assets suitable for the investment of the technical provisions included in article 50 of the Regulation for the organization and supervision of private insurance, approved by Royal Decree 2486/1998, of November 20, with the exception of real estate and real estate rights.
      • The investments of each set of assets must comply with the diversification and dispersion limits established, in general, for insurance contracts by the consolidated text of the Law on the Management and Supervision of Private Insurance, approved by Royal Legislative Decree 6/ 2004, of October 29, ( BOE of November 5) and its Regulations, approved by Royal Decree 2486/1998, of November 20, and other regulations issued in development of that.
        
        However, it will be understood that these requirements are met by those sets of assets that attempt to develop an investment policy characterized by reproducing a certain stock or fixed income index representative of one of the official secondary securities markets of the European Union.
      • The policyholder will only have the power to choose between the different separate sets of assets in which the insurance entity must invest the mathematical provision of the insurance, without in any case being able to intervene in the determination of the specific assets in which, within each separate set, the provisions are reversed.
   3. In these contracts, the policyholder or insured may choose, in accordance with the specifications of the policy, between the different collective investment institutions or separate sets of assets, expressly designated in the contracts, without singular specifications being produced for each policyholder or insured. insured.