10. Termination of life or temporary annuities

Regulations: Art. 37.1.i) Law Income Tax

The life annuity or temporary annuity contract can be defined as that random contract that obliges the debtor to pay a pension or annual income for a certain time or during the life of one or more specific persons, in exchange for capital in movable or immovable property, the ownership of which is transferred to him, of course, with the burden of the pension.

In the extinction of life or temporary annuities, the capital gain or loss will be computed, for the person obliged to pay them, by difference between the acquisition value of the capital received and the sum of the annuities actually paid . As for the annuitant, he exhausts his taxation during the collection of the income.