5. Economic rights

Regulations: Art. 4.Five Wealth Tax Law

Rights of economic content in the following instruments are considered exempt:

• The consolidated rights of the participants and the economic rights of the beneficiaries in a pension plan.

• The rights of economic content that correspond to premiums paid to the insured pension plans defined in article 51.3 of the Personal Income Tax Law .

  In accordance with the aforementioned article 51.3 of the Personal Income Tax Law , insured pension plans are legally defined as insurance contracts that must meet the following requirements:

  1. The taxpayer must be the policyholder, insured and beneficiary. However, in the event of death, it may generate the right to benefits under the terms provided in the regulations governing pension plans and funds.

  2. The contingencies covered must be only those provided for in article 8.6 of the consolidated text of the Law on the Regulation of Pension Plans and Funds approved by Royal Legislative Decree 1/2002, of November 29 (retirement; total and permanent work incapacity for the usual profession or absolute and permanent for all work, and severe disability; death of the participant or beneficiary and severe dependency or great dependency of the participant), and must have retirement coverage as its main coverage in the terms established in article 49.1 of the Personal Income Tax Regulations .

  3. This type of insurance will necessarily have to offer an interest guarantee and use actuarial techniques.

  4. The conditions of the policy will expressly and prominently state that it is an insured pension plan. The name Insured Provident Plan and its acronym are reserved for insurance contracts that meet the requirements set forth in this Law.

  5. Policyholders of insured pension plans may, by unilateral decision, transfer their mathematical provision to another insured pension plan of which they are policyholders, or to one or more pension plans of the individual or associated system in which they are participants. Once the contingency is reached, mobilization will only be possible if the conditions of the plan allow it. The procedure to carry out the mobilization of the mathematical provision is regulated in article 49.3 of the Personal Income Tax Regulations .

• The rights of economic content that correspond to contributions made by the taxpayer to the corporate social security plans regulated in article 51.4 of the Personal Income Tax Law .

  In accordance with article 51.4 of the Personal Income Tax Law , corporate social security plans, in any case, must meet the following requirements:

  1. The principles of non-discrimination, capitalization, irrevocability of contributions and attribution of rights established in number 1 of article 5 of the Consolidated Text of the Law on the Regulation of Pension Plans and Funds, approved, will be applicable to this type of insurance contracts. by Royal Legislative Decree 1/2002, of November 29.

  2. The policy will establish the premiums that the policyholder must pay, which will be charged to the insured.

  3. The conditions of the policy must expressly and prominently state that it is a Corporate Social Security Plan, with this name being reserved for insurance contracts that meet the legally established requirements.

  4. The contingencies covered must be only those provided for in article 8.6 of the consolidated text of the Law on the Regulation of Pension Plans and Funds (retirement; total and permanent work incapacity for the usual profession or absolute and permanent for all work, and severe disability; death and severe dependency or great dependency of the participant), and must have retirement coverage as its main coverage in the terms established in article 49.1 of the Personal Income Tax Regulations .

  5. Corporate social security plans will have to offer an interest guarantee and use actuarial techniques.

• The rights of economic content derived from the premiums paid by the taxpayer to the collective insurance contracts, other than the corporate social security plans, that implement the pension commitments assumed by the companies, in the terms provided for in the first Additional Provision of the consolidated text of the Law for the Regulation of Pension Plans and Funds, and in its implementing regulations, as well as those derived from the premiums paid by employers to the aforementioned collective insurance contracts.

• The rights of economic content that correspond to premiums paid to private insurance that covers dependency defined in article 51.5 of the Personal Income Tax Law .

  These are the premiums paid to private insurance that exclusively cover the risk of severe dependency or great dependency in accordance with the provisions of the Law for the Promotion of Personal Autonomy and Care for People in a Situation of Dependency.