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V0148-22 28 January 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Reduction for old premiums cannot be applied to a life insurance policy contracted in 1997

The applicant asks how to tax the capital from a life insurance policy for survival and whether a reduction can be applied. The DGT rules that, as the contract dates back to 1997, the reduction provided for in the fourth transitional provision of the Personal Income Tax Law (LIRPF) cannot be applied.

The question raised

Taxation of the capital to be received by the taxpayer in the event of survival at maturity. Possibility of applying a reduction.

The DGT's ruling

Income from movable capital is determined by the difference between the capital received and the premiums paid. The reduction provided for in the fourth transitional provision of the Personal Income Tax Act (LIRPF) is not applicable because the contract does not have premiums paid prior to December 31, 1994. The income obtained shall be included in the savings tax base.

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