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

General provisions of the Tax environment in common territory.

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 following accidents shall be exempt from tax up to the amount that shall be legally determined, according to the degree of disability and the age of the disabled party.

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, to the amounts received by the beneficiaries of life assurance contracts will be applied, in addition to the general reductions which the tax rules establish according to the degree of relationship, a specific deduction of 100%, with a limit of 9,195.49 euros, as long as the relationship of the beneficiary with the deceased is one of spouse, parents, issue, adoptive parents or adoptee (this reduction is once only however many the number of policies taken out by the same person).

For these purposes, the autonomous communities may legislate on particular matters relating to this subject, including the creation of deductions and reductions of their own.

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