6. Life insurance
Regulations: Art. 17.Uno Wealth Tax Act
We must distinguish:
In general, life insurance policies taken out by the taxpayer, even if the beneficiary is a third party, will be calculated based on their redemption value at the time of the tax accrual (31 December). This value must be provided by the insurance company.
From 11 July 2021, in cases where the policyholder does not have the right to exercise the right to total redemption on the date of accrual of the tax, the insurance will be calculated by the value of the mathematical provision on the aforementioned date in the policyholder's taxable base.
Exception: The above shall not apply to temporary insurance contracts that only include benefits in the event of death or disability or other complementary risk guarantees.
Note: Until 11 July 2021, this type of life insurance policy, when the policy did not recognise any right to redemption, in whole or in part , it did not pay tax on Wealth Tax, regardless of whether the policyholder was the beneficiary for the survival contingency at the same time.
New 2021 : To determine the taxable base for Wealth Tax, from 11 July 2021, life insurance contracts in which the policyholder does not have the right to exercise the full redemption right will be included in the tax base of the Wealth Tax for the value of the mathematical provision on the accrual date of the Tax (31 December of each year), with the exception of temporary insurance contracts that only include benefits in the event of death or disability or other complementary guarantees of the risk.