TAX REGULATION OF ANNUAL RENEWABLE MULTILIFE, PERMANENT MULTILIFE, PERIODIC PREMIUM CURRENT SAVINGS, SINGLE PREMIUM CURRENT SAVINGS and Ocaso Children's Savings

General information regarding the tax environment in the Community of Navarra

In general the benefits received from individual life assurances, wherever the beneficiary and the policyholder are the same person, will be subject to Tax on the Income of Physical Persons, (I.R.P.F.), as income from capital.

The yield from capital shall be determined by the difference between capital sum received and the amount of premiums paid.

In all cases, the resulting net capital yield shall be applied to the taxable savings base, paying at the fixed rate of tax on savings of 18%.

Similarly, the Insurance Company shall be obliged to apply to the net yield arising from the benefits afforded, a retention on account of I.R.P.F., at a fixed rate of 18%.

Exceptionally, the benefits for disability following an accident shall be exempt from tax up to the amount that shall be legally determined.

The benefits derived from life or disability insurance contracts, when the beneficiary is distinct from the policyholder, shall remain subject to tax on Inheritances and Donations.

As regards acquisitions as a result of death, when the deceased was normally resident in Navarra, the amount received by the beneficiaries of life assurances, are exempt from tax, provided that the relationship between policyholder and beneficiary was that of spouse, parent, issue, adoptive parent or adoptee.

THIS TYPE OF INSURANCE SHALL BE SUBJECT TO THE TAX BENEFITS THAT THE LAW DETERMINES AT ALL TIMES.