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A query was raised regarding whether a single-premium unit-linked endowment life insurance policy should be subject to Wealth Tax. The Directorate General of Taxes (DGT) ruled that, as the policy has no surrender value during its term, it should not be included in the holder's taxable assets.
This ruling clarifies that unit-linked life insurance policies lacking a surrender value are exempt from Wealth Tax, providing legal certainty for holders of such products.
The tax team reviews your specific situation.
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