Instrumentation and form of perception of benefits
The resources provided must be implemented through individual life insurance in which the contracting party, insured and beneficiary is the taxpayer himself.
The life insurance policies eligible for this contractual formula will not be group insurance that implements pension commitments in accordance with the first Additional Provision of the consolidated text of the Law on the Regulation of Pension Plans and Funds, nor social security instruments that reduce the tax base of Personal Income Tax .
The conditions of the contract will expressly and prominently state that it is a systematic individual savings plan and its acronyms are reserved for contracts that meet the requirements set forth in the Personal Income Tax Law.
Form of perception of benefits
The life annuity will be constituted with the economic rights from said life insurance policies. 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 the insured (who, in the case of PIAS , is the first beneficiary ) can transfer, after death, all or part of the annuity to a new 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 provided for in article 7.v) of the Personal Income Tax Law meets the intended purpose, contracts entered into with subsequent to April 1, 2019 in which reversal mechanisms, certain benefit periods or counterinsurance formulas in case of death are established, compliance with the following requirements (Additional Provision ninth Regulation IRPF):
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 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 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 December. April 2019, regardless of whether the annuity is created after said date.