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V0582-20 16 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · unit-linked

No income from movable capital is imputed for unit-linked insurance if one is neither the policyholder nor the beneficiary

Members of an entity consulted on how the subscription of a unit-linked life insurance policy by said entity would be taxed under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as the consultants are neither the policyholder nor the beneficiary of the contract, they do not obtain income from movable capital.

The question raised

An inquiry is made regarding the impact on Personal Income Tax (IRPF) for the applicants of the aforementioned insurance contract.

The DGT's ruling

In unit-linked life insurance policies, the policyholder must assume the investment risk so that returns arising from the difference in net asset value are imputed to them. However, if the applicants do not hold the status of policyholder or beneficiary of the contract, the transaction does not result in the obtaining of returns on movable capital for them according to the Personal Income Tax Act (LIRPF).

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