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2021 Wealth Tax practical guide.

5. Economic rights

Regulations: Art. 4.Cinco Wealth Tax Act

The rights of economic content are considered exempt in the following instruments:

  • The vested rights of the participants and the financial rights of the beneficiaries in a pension plan.

  • The rights of economic content corresponding to premiums paid to the guaranteed benefit plans defined in article 51,3 of the Personal Income Tax Act.

    In accordance with the aforementioned article 51,3 of the Personal Income Tax Act, the guaranteed benefit plans are legally defined as insurance contracts that must meet the following requirements:

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

    2. The contingencies covered must only be those provided for in article 8,6 of the revised text of the Pension Plans and Funds Regulation Act approved by Royal Legislative Decree 1/2002 of 29 November (retirement; Total and permanent incapacity to work for the usual or absolute and permanent profession for all work, and severe disability; Death of the participant or beneficiary and severe or high dependency of the participant), having as the main cover the retirement under the terms established in article 49,1 of the Personal Income Tax Regulation.

    3. This type of insurance must offer an interest guarantee and use actuarial techniques.

    4. The conditions of the policy shall be expressly and prominently stated in the policy, which is an insured pension plan. The name Guaranteed Benefit Plan and its acronym are reserved for insurance contracts that meet the requirements set out in this Act.

    5. Policyholders of the guaranteed benefit 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 of which they are participants. Once the contingency has been reached, the transfer will only be possible if the conditions of the plan allow it. The procedure for making the mathematical provision transfer is regulated in article 49,3 of the Personal Income Tax Regulation.

  • The rights of economic content that correspond to contributions made by the taxpayer to the corporate social welfare plans regulated by article 51,4 of the Personal Income Tax Act.

    In accordance with article 51,4 of the Personal Income Tax Act, corporate social welfare plans must, in any case, meet the following requirements:

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

    2. The policy will establish the premiums to be paid by the policyholder, which will be subject to allocation to the insured parties.

    3. The terms and conditions of the policy must expressly and prominently include a Business Social Welfare Plan, and this name is reserved for insurance contracts that meet the legally established requirements.

    4. The contingencies covered must only be those provided for in article 8,6 of the revised text of the Pension Plans and Funds Regulation Act (retirement; Total and permanent incapacity to work for the usual or absolute and permanent profession for all work, and severe disability; Death and severe or high dependency of the participant), having as the main cover the retirement under the terms established in article 49,1 of the Personal Income Tax Regulation.

    5. Corporate pension plans must offer an interest guarantee and use actuarial techniques.

  • The economic content rights derived from premiums paid by the taxpayer to collective insurance contracts, other than pension plans corporate social enterprise, which implements the pension commitments assumed by companies, under the terms set out in the first Additional Provision of the consolidated text of the Act on the Regulation of Pension Plans and Funds, and in their implementing regulations, as well as those derived from the premiums paid by employers to the aforementioned collective insurance contracts.

  • The economic content rights corresponding to premiums paid to private insurance policies that cover the dependency defined in article 51,5 of the Personal Income Tax Act.

    These are premiums paid to private insurance policies that exclusively cover the risk of severe dependency or high dependency, in accordance with the provisions of the Law on the promotion of personal autonomy and care for people in a situation of dependence.