On October 31, 2023, the Official State Gazette (BOE) published Order HFP/1180/2023, which amends Order EHA/3481/2008, approving the model 189 for the Annual Informative Declaration on securities, insurance, and income.
This amendment includes changes to the physical and logical design of the form to make it machine-readable and sets conditions for electronic submission. Order HAP/72/2013, which approves model 720, an Informative Declaration on assets and rights abroad, was also modified. These changes come into effect on November 1, 2023, and will apply for the first time to the informative declarations for the fiscal year 2023, starting on January 1, 2024.
The modifications aim to align the required information in these models with the new regulations established by Law 11/2021 on measures for the prevention and fight against fraud, as well as Royal Decree 249/2023.
Changes in Model 189
- Article 3 of the form’s regulations is modified to comply with the new wording of Article 39, paragraph 3 of the RGAT and the update of Article 17 of the Wealth Tax Law. This modification entails the obligation to report on the mathematical provision value as of December 31 in life insurance policies when the policyholder cannot redeem the total value on that date, except for term life insurance policies that only cover death, disability, or other supplementary guarantees. This obligation applies in cases where temporary or life annuities are received from a life insurance policy unless the policyholder is different from the annuity recipient and retains the right to redemption.
- The “Value Key” field in type 2 record designs, declared record, is changed to add a new key “F” used to report on life insurance policies without surrender value. Details about the policyholder and the value of the mathematical provision as of December 31 must be provided, in accordance with Article 17 of the Wealth Tax Law.
- The “Valuation” field in type 2 record designs, declared record, is adjusted to specify that if the new key “F” has been indicated, it is necessary to include the value of the mathematical provision as of December 31.
Changes in Model 720
- Modifications are made to Article 2 of the Model 720 regulations to align it with the recent revision of Article 42 ter of the RGAT. These changes aim to include a new situation within the scope of the form. In this new circumstance, when the policyholder is different from the annuity recipient and retains the right of redemption, it will be the policyholder who assumes the obligation to submit Model 720.
- Changes are made to the type 2 record designs, detailed record, to align the tax information of the form with the new wording of Article 42 ter of the RGAT. To achieve this, the field “Valuation 1: balance or value at December 31; value on the date of extinguishment; acquisition value” is modified to specify that in cases where the “Type of Property or Right Key” field indicates “S” in relation to life insurance or disability and temporary or life annuities derived from life insurance with foreign insurance companies, the value of the mathematical provision as of December 31 must be reported when the policyholder cannot exercise the full right of redemption on that date. This excludes temporary insurance contracts that only cover death or disability and other complementary risk guarantees.
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