8. Loss of the right to exemption for reinvestment in annuities

Regulations: Art. 42.5 Regulation Income Tax

Failure to comply with any of the conditions established for the application of the exemption for reinvestment in life annuities, or the advance, in whole or in part, of the economic rights derived from the life annuity established, will determine the subjection to taxation of the corresponding capital gain.

In such case, the taxpayer will impute the non-exempt capital gain to the year in which it was obtained, making a supplementary self-assessment and will submit it within the period between the date on which the non-compliance occurs and the end of the regulatory declaration period corresponding to the tax period in which said non-compliance occurs.

This self-assessment will generate late payment interest which, where applicable, will be settled by the Administration.

Note: If the supplementary declaration responds to this circumstance, the taxpayer must mark with an "X" the box [118] of the "Supplementary declaration" section of the declaration.