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Practical Income Manual 2021.

8. Loss of the right to exemption for reinvestment in annuities

Regulations: Art. 42.5 Regulation Personal Income Tax

Failure to comply with any of the conditions established for the application of the exemption for reinvestment in annuities, or the anticipation, in whole or in part, of the economic rights derived from the annuity created, will determine the subjection to taxation of the corresponding capital gain.

In such case, the taxpayer will allocate the non-exempt capital gain to the year of its obtaining, performing complementary self-assessment, including late payment interest, and it will be presented within the period between the date on which the non-compliance occurs and the termination. of the regulatory declaration period corresponding to the tax period in which said non-compliance occurs.

Note: If the complementary declaration responds to this circumstance, the taxpayer must mark with an "X" the box [118] of the "Complementary declaration" section of the declaration.