C 1. Benefits received in the form of capital derived from collective insurance contracts that implement company pension commitments
Regulations: eleventh transitional provision Law Personal Income Tax
Beneficiaries of benefits received in the form of capital derived from contingencies that occurred after January 1, 2014, of insurance contracted before January 20, 2006, can apply the financial and tax regime in force on December 31, 2006, but only to the part of the benefit corresponding to contributions made up to said date (December 31, 2006), as well as to the ordinary premiums provided for in the original contract policy paid after said date.
The above should also be understood to be applicable to benefits derived from contingencies that occurred after January 1, 2014 that correspond to group insurance contracted prior to January 20, 2006, when the automatic annual renewal of the insurance policy involves a novation. merely modifying that does not terminate the insurance relationship or restart it on the occasion of each renewal, extension or alteration. Criterion established by the Supreme Court in Sentence number 545/2020, of May 25 (ROJ: STS 1665/2020)
This regime is the following:
a. Business contributions not attributed to workers.
The applicable reduction on the amount of the benefit received is 40 per 100 in the following cases:
When they correspond to premiums paid more than two years in advance of the date on which they are received.
When it comes to disability benefits, regardless of the period of time that has elapsed since the first contribution.
b. Business contributions attributed to workers
The reduction percentages indicated below must be applied to the amount resulting from reducing the benefit received in the amount of the business contributions attributed to the worker, as well as in the amount of the contributions, if applicable, made by the worker himself.
|Reduction 75 percent
|Reduction 40 percent
|Returns corresponding to premiums more than five years in advance
|Returns corresponding to premiums more than two years in advance
|Benefits for absolute permanent disability or great disability
|Remaining disability benefits
However, a one-time reduction of 75 percent of the entire yield may be applied if the following requirements are met:
That these are insurance contracts concluded after December 31, 1994.
That more than eight years have passed since the payment of the first premium.
That the average period of permanence of the premiums has been greater than four years. Said average period is the result of calculating the sum of the premiums multiplied by their number of years of permanence and dividing it by the total sum of the premiums paid. That is to say:
∑ (Premiums x number of years of permanence) / ∑ (paid premiums)
In the event that there have been periodic or extraordinary premiums , in order to determine the part of the total return obtained that corresponds to each premium, said total return will be multiplied by the resulting weighting coefficient. of the following quotient: in the numerator, the result of multiplying the corresponding premium by the number of years elapsed since it was paid until the benefit was collected and in the denominator, the sum of the products resulting from multiplying each premium by the number of years elapsed since was satisfied until the collection of the perception. That is to say:
Premium x number of years elapsed from payment to collection /<!--StartFragment--> ∑<!--EndFragment--> (each premium x number of years elapsed from payment to collection)
Finally, indicate that this tax regime is also applicable to collective insurance contracts that implement the externalization of pension commitments agreed in collective agreements at a supra-corporate level under the name "retirement awards" or others, which consist of a benefit payable by a single once at the time of termination due to retirement, signed before December 31, 2006.
Important: As of January 1, 2015, the application of the reductions of the transitional regime is limited to benefits in the form of capital that are received within the periods indicated in section " Temporary limits for the application of the reductions of the transitional regime " .