TAX REGULATION OF ANNUAL RENEWABLE MULTILIFE, PERMANENT MULTILIFE, PERIODIC PREMIUM CURRENT SAVINGS AND SINGLE PREMIUM CURRENT SAVINGS

General information regarding the tax environment in the historic territories of Alava, Guipuzkoa and Vizcaya.

In general the benefits received from individual life assurances, wherever the beneficiary and the policyholder are the same person, will be subject to 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 net capital yield resulting shall be applied to the taxable savings base, paying at the fixed rates of tax on savings of 19%.

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 19%.

Exceptionally, the benefits for disability as a result of accidents shall be exempt from tax up to the amount of 150,000 euros. This amount shall be increased to 200,000 if the injury disables the injured party from carrying out any occupation or activity, and to 300,000 euros if, additionally, the injured party needs the assistance of another person for the most essential acts of daily life.

The benefits derived from life or disability insurance contracts, when the beneficiary is distinct from the contractor of 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 Alava, Guipuzkoa or Vizcaya, 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, parents, issue, adoptive parents or adoptee.

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