Taxation life insurance:


The Multisupport Contract with Payments and Free Withdrawal AFER profits from the advantageous taxation of the Insurance life.

The saving on the long term is encouraged: the interests are exonerated in the very large majority of the cases after 8 years of duration, the social taking away are perceived only at the time of the repurchases and are exonerated in the event of death.

Imposition of the repurchases:   

The life insurance profits from a completely advantageous tax system which aims to encourage the constitution of a saving on the means and long term.The incomes and appreciations are thus exonerated from tax during all their phase of capitalization. It is only at the time of the final repurchases (partial or total) that an imposition on the incomes and appreciations will be, in certain cases, applied with completely advantageous conditions.

For a better comprehension of the device in force, we voluntarily excluded from this study the social taking away.

1. APPLICABLE MODE:   

In the event of partial or total repurchase, you have the choice between two methods of imposition: 

· Is the integration of the interests in the assessed income.  GIE AFER will address to you in February of the following year a printed paper form specifying the amount to be deferred on your income tax return. 

· Is the levy at source.The applicable rates are decreasing according to the seniority of your adhesion calculated as from the 1st payment: 

· 35% if your repurchase intervenes during the first 4 years; 
· 15% if your repurchase intervenes during 4 years following; 
· 7,5% if your repurchase intervenes after 8 years.

2. The TAX IMPACT IS Actually Of a VERY LIMITED RANGE:   

2.1 Cases of exemption:   

2.1.1 Cases of total exemption:   

The exemption of imposition on the incomes and appreciations of the contract is systematic, whatever the duration of the contract 
· for the whole of the contracts subscribed before the 31/12/1982; 
· in the event of death of the member; 
· or when the outcome intervenes in the year which follows the dismissal of the member, his setting in early retirement or its disability which affects it him or its spouse (classification in the second or third category envisaged with the L.341-4 article of the social error correcting code).   

2.1.2 Cases of exemption after 8 years:   

Are exonerated from the tax on 7,5% in the event of total or partial withdrawal after 8 years: 
· Accounts AFER subscribed within the framework of the P.E.P. 
· Accounts AFER subscribed within framework “DSK”     

2.2 In the event of partial repurchase, only the fraction of interests corresponding to the withdrawn capital is taxable, which limits the impact of taxation considerably.  

2.3 Application of an annual frankness in the event of repurchase after 8 years:   

In the event of repurchase after 8 years, the member profits from an annual frankness from nontaxable interests from 4.600 €uros for a person alone, widowed or divorced, and of 9.200 €uros for a married couple and completing a Joint Declaration.   

The 7,5% will thus apply to the amount of the interests calculated at the time of the repurchase, only for the share which will exceed these franknesses from 4.600 €uros or of 9.200 €uros.   

Caution: This frankness applies to the whole of the contracts of the member and not contract by contract. In the event of levy at source, the tax on 7,5% will be applied to the first “€uro” of interest, the policy-holder profiting one tax credit corresponding.

3. DECLARATORY OBLIGATIONS   

GIE AFER is held to declare each year with the tax authorities the repurchases partial or total occurred in the year, their amounts as well as the precise identity of the recipients of these repurchases.   

Conclusion:   

Contract AFER enables you to constitute a saving on the means and the long term under the optimal tax conditions. It also enables you to enjoy it at the time the retirement in particular in the form of free repurchases, in the major part of the cases in exemption of imposition on the incomes and appreciations.   

4. THE CASE OF THE TAX NON-RESIDENTS 
  
I - Contract of insurance life subscribes since less than 4 years to the day of the partial repurchase  The quota of the products noted at the time of a repurchase is obligatorily subjected to the contractual levy at source of 35% subject to provisions resulting from a International Convention, between France and the home country, more favorable.  The tax non-residents are not indebted social contributions.     

II - Contract of insurance life has subscribed for more than 4 years and less than 8 years to the day of the partial repurchase  The quota of the products noted at the time of a repurchase is obligatorily subjected to the contractual levy at source of 15% subject to provisions resulting from a International Convention, between France and the home country, more favorable.  The tax non-residents are not indebted social contributions.     

III - Contract of insurance life has subscribed for more than 8 years without payment since the 25/09/1997  The quota of the products noted at the time of a repurchase is completely exonerated from taxation.     

IV - Contract of insurance life has subscribed for more than 8 years with payments carried out since the 25/09/1997  The quota of the products resulting from payments carried out since the 25/09/1997 and noted at the time of a repurchase is obligatorily subjected to the contractual levy at source of 7,5%, subject to provisions resulting from a International Convention, between France and the home country, more favorable.  The tax non-residents are not indebted social contributions.   

The transmission of the saving is facilitated: the saving is transmitted in the event of death to the recipients whom you freely designated, in the major part of the cases, without inheritancees tax death.