a) Immediate, lifetime or temporary income insurance
1. Immediate annuity insurance
Regulations: Art. 25.3 a) 2 Law Personal Income Tax
In the case of immediate life annuities, which have not been acquired by inheritance, legacy or any other succession title, the result of applying the following percentages to each annuity based on the age of the annuitant at the time of the constitution of the income and that will remain constant throughout its validity:
| Age of recipient | Applicable percentage |
|---|---|
| Less than 40 years | 40 percent |
| Between 40 and 49 years | 35 percent |
| Between 50 and 59 years | 28 percent |
| Between 60 and 65 years | 24 percent |
| Between 66 and 69 years | 20 percent |
| 70 or more years | 8 per 100 |
Note: In accordance with the fifth transitional provision of the Personal Income Tax Law these percentages are applicable to benefits in the form of income received as of January 1, 2007, even when the constitution of the income would have occurred prior to said date.
The part of the income that is considered a return on movable capital, by application of the corresponding percentage, is subject in 2020 to the withholding rate of 19 percent.
Note: It is understood that the income has been acquired by inheritance, legacy or any other succession title, when their acquisition has been motivated by the death of the contracting party, if the insurance is individual, or of the insured if the insurance is collective contracted by the company. company.
This same tax regime will be applicable to life annuities received from individual systematic savings plans that meet the requirements established in the third Additional Provision of the Personal Income Tax Law, even in the cases in which the aforementioned individual systematic savings plans are the result of the transformation of certain life insurance contracts formalized prior to January 1, 2007 in which the contracting party, insured or beneficiary is the taxpayer himself.
See the fourteenth transitional provision of the Personal Income Tax Law regarding the transformation of certain life insurance contracts into individual systematic savings plans. See also the fifth Additional Provision of the Personal Income Tax Regulations regarding total or partial mobilization between individual systematic savings plans.
2. Immediate temporary income insurance
Regulations: Art. 25.3 a) 3 Law Personal Income Tax
In the case of immediate temporary income, which has not been acquired by inheritance, legacy or any other succession title, in the terms discussed in the previous section, the result of applying to each annuity the following percentages based on the rental duration:
| Rental duration | Applicable percentage |
|---|---|
| Less than or equal to 5 years | 12 per 100 |
| Greater than 5 and less than or equal to 10 years | 16 per 100 |
| Greater than 10 and less than or equal to 15 years | 20 percent |
| Over 15 years | 25 percent |
Note: In accordance with the fifth transitional provision of the Personal Income Tax Law these percentages are applicable to benefits in the form of income received as of January 1, 2007, even when the constitution of the income would have occurred prior to said date.
The part of the income that is considered income from movable capital by application of the corresponding percentage will be subject to withholding on account.