Special regime of retirement and disability benefits
Regulations: Articles 25.3 a) 4 Law Personal Income Tax (second paragraph) and 19 Regulation
Retirement and disability benefits received in the form of income by the beneficiaries of life or disability insurance contracts in which there has been no type of mobilization of the provisions of the insurance contract during its validity, will be integrated into the tax base as income from movable capital, from the moment in which its amount exceeds the premiums that have been paid under the contract.
In the event that the income has been acquired by donation or any other legal transaction, free of charge and inter vivos, it will be integrated into the tax base as income from movable capital, from the moment its amount exceeds the current actuarial value. of the income at the time of their constitution.
In both cases, the percentages provided for immediate life or temporary annuities will not be applicable . The application of this regime is also conditional on compliance with the following requirements (Art. 19 Regulation Personal Income Tax ):
That the insurance contract has been concluded at least two years in advance of the retirement date.
The contingencies covered must be those provided for in article 8.6 of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29 ( BOE of December 13).
In accordance with the provisions of the aforementioned article, the contingencies covered by the Pension Plans and for which the benefits will be satisfied are the following: retirement; total and permanent work incapacity for the usual profession, or absolute and permanent for all work, and severe disability, determined in accordance with the corresponding Social Security Regime; death of the participant or beneficiary, which may generate the right to widow's or orphan's benefits, or in favor of other heirs or designated persons and severe dependency or great dependency of the participant regulated in Law 39/2006, of December 14, on the promotion of personal autonomy and care for people in a situation of dependency (BOE of 15).
It will be understood that some type of mobilization of the provisions of the insurance contract has occurred when the limitations that, in relation to the exercise of economic rights, establish the first Additional Provision of the consolidated text of the Plan Regulation Law, are breached. and Pension Funds, and their implementing regulations, regarding group insurance that implements companies' pension commitments.
Note: If the above requirements are met, this special regime is applied in preference to the general regime mentioned above.
Don JPN signed a deferred annuity life insurance contract on May 10, 2013, paying an annual premium of 5,000 euros payable on May 10 of each of the years 2013 to 2021, both inclusive.
On May 13, 2021, coinciding with his 65th birthday and his retirement date, he began collecting a life annuity of 4,500 euros per year.
Determine the net return on movable capital knowing that, according to certification by the insurance company's actuary, the current actuarial financial value of the annuity to be collected amounts to 65,000 euros.
Applying the special retirement benefit regime, it results:
Return on movable capital during the first 10 years of income collection: (+) Income received (4,500 x 10) = 45,000
Premiums paid (5,000 x 9) = 45,000
Returns on movable capital during the first ten years of income collection (45,000 - 45,000) =0
Return on movable capital from the eleventh year of income collection = 4,500 euros each year.