TAX REGULATION OF ASSURED SAVINGS PLANS

General provisions relating to the tax environment in the Community of Navarra

Taxation of premiums

Qualifying premiums for assured savings plans which meet the preceding requirements, may be offset against basic IRPF up to a maximum limit which is the lower of the two following amounts:

• 30% of the sum of net income from work and from economic activity. Nevertheless, in the case of contributors more than 50 years of age, this percentage shall be 50%.
• 8,000 euros per annum. Nevertheless in the case of contributors more than 50 years of age, this limit shall be 12,500 euros per annum.

Maximum combined limit for all social security benefits and contributions.

Independently of reductions made in accordance with the above limits, in respect of contributors whose spouse or partner does not receive income to be included in the general taxable base or who receives less than 8,500 euros per annum, the taxable income may be reduced by the amounts paid into assured savings plans effected in the spouse’s name, up to a maximum limit of 2,000 euros per annum (these contributions shall not be subject to ISD).

When the payments which may give rights to reduce the taxable base exceed the limit established in the previous point, the excess amounts may be deducted in the five following years.

Payments made towards assured savings plans for the benefit of persons with 65% or more physical or sensorial disability, psychiatric deficiency of more than 33%, as well as any person with a judicially declared disability, regardless of the degree thereof, with whom there exists a family relationship up to the third degree of consanguinity or that of spouse, or a state of guardianship or trusteeship, may qualify for reduction in the taxable base, subject to the following limits (these payments shall not be subject ISD):

• 10.000 € per annum, without affecting payments which may be made to your own assured saving plans.
• Payments made by persons suffering incapacity, with a limit 24,250 euros per annum.
• The total of the reductions made for all persons who make payments in favour of the same person with incapacity, may not exceed 24,250 euros per annum, including those of the person with incapacity himself. For these purposes, when there are several payments in favour of a person with incapacity, the reduction will be applied, in the first place, to the payments made by the person with incapacity himself and, only if these do not exceed the limit of 24,250 euros per annum, the payments made by other persons in his favour may be the subject of a reduction in their respective taxable bases, on a proportional basis.

Where the previously mentioned provisions do not produce a reduction in the taxable base due to the insufficiency hereof, they may be reduced in the five following tax years, including those cases where the payments made by the promotor may have been allocated (always within the previous limits).

All the limits on recutions previously mentioned shall be added together for the total of payments made for the contributors to pension plans, social savings mutuals, assured savings plans, company savings plans and dependency insurance.

Taxation of benefits

All benefits received by the beneficiaries of assured savings plans shall be considered personal income from work, regardless of whether the benefits arise from cases of survival or death.

In general the benefits received shall be computed in full except where one of the following reductions is applicable.

Benefits received in the form of capital sums.

The net yield shall be determined by applying a single percentage reduction of 30%, always assuming that two years shall have passed since the first payment.

Benefits for disability in the form of capital sums:

The net yield shall be determined by applying a single 50% reduction, when concerning benefits for permanent partial, total and absolute incapacity as well as grave incapacity. benefits.

Benefits for retirement or disability in the form of an annuity.

The full amount shall be computed where the benefits for retirement or disability shall be received in form of annuity.

Amounts to be retained for tax.

The yield from work derived from payments under these assured savings plans are subject to a retention on account of I.R.P.F., at percentages determined in each case, according to the personal circumstances of the recipient.

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