FAQs
(Updated as of March 2022)
Is there an obligation to report on...?
There is no obligation to provide information on pension plans (contributions to them) as long as the incident that gives rise to the collection of the pension in the form of a temporary or life annuity does not occur.
Article 42 ter of the General Regulation approved by RD 1065/2007, of July 27, refers to the Wealth Tax Law for the valuation of certain income. Specifically, in the case of temporary income and annuities.
Article 17 of the Wealth Tax Law in section two establishes that temporary or life annuities constituted as a consequence of the delivery of capital in money, movable or immovable property, must be computed by their capitalization value (on the date of accrual of the tax), applying the same rules that are established for the constitution of pensions in the Tax on Property Transfers and Documented Legal Acts. Article 10.2.f of the Law of ITPAJD values the “the tax base of pensions” capitalizing on them.
Therefore, regarding the possible obligation to report the consolidated rights in a pension plan located and established abroad, it must be taken into account that such rights are not included in any of the categories of goods and rights located abroad to which the eighteenth Additional Provision of the General Tax Law and articles 42 bis, 42 ter and 54 bis of the General Regulation of the actions and procedures of tax management and inspection and the development of common standards for tax application procedures.
However, to the extent that the conditions of the foreign pension plan establish the possibility of exercising the right of redemption in favor of the participant under the terms of life insurance, it must be the subject of information in accordance with article 42 ter.3.a).
In any case, once any of the contingencies covered by the plan have occurred, the beneficiary must inform of the rights existing therein, either with an indication of their surrender value, in accordance with article 42 ter.3.a), or in accordance with article 42 ter.3.b) if an income is constituted in its favor.
Yes, whatever the type of redemption, if as a result of being exercised an income is obtained, it must be reported.
No.
Yes, this type of account does not imply any type of specialty that discriminates them with respect to the rest of the accounts located abroad in the terms established in article 42 bis of the General Regulations approved by the RD 1065/2007, of July 27.
There is no obligation to report assets deemed as such.
However, it is different if these assets are the underlying assets of assets and rights subject to an information return, such as temporary income or annuities obtained from the delivery of cash, economic rights or real or personal property to institutions located abroad. In this case, you must report income thus obtained, regardless of the assets or rights provided.
There is only duty to declare the transfer to third parties of own capitals if they are represented by values.
Yes.
Provided that there is no cause that exonerates you from the obligation to submit an informative return as established in articles 42 bis, 42 ter and 54 bis of the General Regulations approved by the RD 1065/2007, of July 27, you must present Form 720 regardless of whether the income with which these assets and rights were acquired had been exempt or not.
No, the taxpayer only needs to declare when he or she holds the ownership or real ownership on the property, or the right in rem for said property.
Yes, the fact that the policyholder assumes the risks of the investment in which provisions materialize does not alter the obligation to declare.