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A query is made as to whether a single-premium, individual life insurance contract without surrender value should be subject to Wealth Tax. The DGT responds that, as no surrender value exists, taxation is not applicable.
Question posed: Taxation of the aforementioned insurance contract in Wealth Tax.
Pursuant to Article 17.One of Law 19/1991, life insurance policies are calculated based on their surrender value. In cases where the policyholder lacks a right to surrender, taxation of the insurance shall not apply to either the policyholder or the beneficiary.
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