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A query was raised regarding whether a unit-linked insurance policy, which allows for partial surrenders after five years, should be subject to Wealth Tax. The Directorate General for Taxes (DGT) ruled that the right to surrender value is immediately integrated into the insured party's assets.
This ruling clarifies that the liquidity potential of unit-linked insurance policies must be accounted for in the calculation of Wealth Tax, potentially increasing the tax liability for policyholders.
The tax team reviews your specific situation.
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