Provision of economic rights and taxation of the insured annuity
Provision of economic rights
In the event of disposal, in whole or in part, by the taxpayer before the constitution of the life annuity, the accumulated economic rights will be taxed in accordance with the provisions of the Personal Income Tax Law in proportion to the disposition made. For these purposes, the amount recovered will be considered to correspond to the premiums paid in the first place, including their corresponding profitability.
Policyholders of individual systematic savings plans may, by unilateral decision, mobilize their mathematical provision to another individual systematic savings plan of which they are policyholders. The total or partial mobilization of one systematic savings plan to another will follow, to the extent applicable, the procedure relating to insured pension plans (Fifth Additional Provision Personal Income Tax Regulation).
In the case of anticipation, total or partial, of the economic rights derived from the life annuity established, the taxpayer must integrate into the tax period in which the anticipation occurs, the income that was exempt by application of the provisions of the letter v) of article 7 of the Personal Income Tax Law.
Taxation of insured annuity
The profitability that is evident in the constitution of the insured annuity (difference between the current actuarial value of the income and the sum of the premiums paid) is found exempt from personal income tax , in accordance with the provisions of article 7.v) of the Personal Income Tax Law.
The annuity received will be taxed in accordance with the percentages established for immediate annuities.
For these purposes, it is worth remembering that, in the case of immediate annuities that have not been acquired by inheritance, legacy or any other succession title, the result of applying the following percentages to each annuity is considered a return on movable capital:
Age of recipient Applicable percentage Less than 40 years 40 percent Between 40 and 49 years 35 percent Between 50 and 59 years 28 percent Between 60 and 65 years 24 percent Between 66 and 69 years 20 percent 70 or more years 8 per 100
These percentages will be those corresponding to the age of the annuitant at the time of the constitution of the annuity and will remain constant throughout its validity.