Requirements of the insured annuity
a. The annuity contract must be signed between the taxpayer, who will have the status of beneficiary, and an insurance entity .
In life annuity contracts, reversal mechanisms or certain benefit periods or counterinsurance formulas may be established in the event of death once the annuity has been established.
The reversal mechanism in insurance contracts is the procedure by which, in the event of the death of the insured (who in this case is the contracting party and beneficiary), all or part of the annuity is transferred to a new insured and beneficiary.
Life annuity insurance contracts with certain benefit periods are those in which it is guaranteed that the income will be received for a minimum number of years even if the insured and initial beneficiary of the insurance dies. income (logically in the event of the death of the insured, the income will be received by the beneficiary designated for this purpose).
Finally, the counterinsurance formulas (the most used in insurance practice) are those that guarantee the designated beneficiary a capital in the event of the death of the insured.
Now, in order to ensure that the application of the exemption of reinvestment gain provided for in article 38.3 of the Personal Income Tax Law complies with the intended purpose, it is required for the contracts entered into after April 1, 2019, in which reversal mechanisms, certain benefit periods or counterinsurance formulas in the event of death are established, compliance with the following requirements (Additional Provision ninth Law Personal Income Tax ):
In the case of reversal mechanisms in the event of the death of the insured, there may only be one potential beneficiary of the annuity who reverts.
In the case of certain benefit periods, said periods may not exceed 10 years from the constitution of the annuity.
In the case of counterinsurance formulas, the total amount to be received upon the death of the insured may at no time exceed the following percentages with respect to the amount allocated to the constitution of the annuity:
Years since the constitution
of the annuity
Applicable percentage 1st 95 percent 2nd 90 percent 3rd 85 percent 4th 80 percent 5th 75 percent 6th 70 percent 7th 65 percent 8th 60 percent 9th 55 percent 10th onwards 50 per 100
Important : The new requirements established for cases in which there are reversal mechanisms, certain benefit periods or counterinsurance formulas in the event of death on insured annuity contracts will not apply to life insurance contracts entered into prior to 1 April 2019, regardless of whether the annuity is created after said date.
b. The life annuity must have a frequency of less than or equal to year , begin to be received within a period of one year from its constitution, and the annual amount of the income may not decrease by more than 5% with respect to the last year.
c. The taxpayer must inform the insurance company that the life annuity contracted constitutes the reinvestment of the amount obtained from the transfer of assets, for the purposes of applying the exemption provided for in this article.