10. Extinction of life or temporary annuities

Regulations: Art. 37.1.i) Law Personal Income Tax

The life or temporary annuity contract can be defined as that random contract that obliges the debtor to pay a pension or annual income for a specific time or during the life of one or more specific persons, in exchange for capital in movable or immovable property, whose domain is transferred to him, of course, with the burden of the pension.

In the extinction of life or temporary annuities, the capital gain or loss will be computed, for the person obliged to pay them, by the difference between the acquisition value of the capital received and the sum of the annuities actually paid . As for the rentier, he exhausts his taxation during the collection of the rent.