Under what conditions are the revenues of a life insurance contract exempt from tax?

Under what conditions are the revenues of a life insurance contract exempt from tax?

Are exempt from tax but not social levies:

    Contracts before 1983 if they are paid to payments made before October 10, 2019 or since 10 October 2019 if they were recovered before 1 January 2020 (Finance Act 2020 Article 9);

    Those subscribed since 1983 if they are attached to payments made before 1998, to scheduled payments made between 26 September 1997 and 31 December 1997, or to exceptional payments of less than 30,000 euros over the same period;

    "Periodic premium" contracts subscribed before 26 September 1997 if they are attached to the payments provided for in the Contract at the origin;

    The contracts subscribed since 1983 in the event of withdrawal after 8 years if they are attached to payments made after 1998, up to 4,600 euros per year for a single person, or from 9,200 euros a year for a couple;

    Contracts of at least 8 years invested primarily in shares, called "DSK contracts" or "NS" (for Strauss-Kahn and Sarkozy);

    The contracts denied by the payment of an annuity, irrespective of their duration (but a share of the annuity is taxable as a life annuity for expensive purposes);

    Contracts of more than 8 years of payments before 01/01/1998 are exempt from tax;

    There is also tax exemption when the end of the contract results from one of the following situations, affecting the subscriber or his spouse:
        invalidity of the subscriber (2nd or 3rd category);
        early retirement;
        dismissal (excluding conventional breach of the employment contract: in this sense: Ministerial response of January 28, 2016, J.O. Senate, n ° 17933;
        cessation of non-salaried activity following a judgment of judicial liquidation;

Reporting obligations

The taxable income of life insurance contracts are normally registered (pre-printed) in the pre-completed returning declaration No. 2042, and the declarant just only correct the amount if the latter is incorrect.

The declarant who wishes to "opt" for the integration of income into the calculation of his income tax, in other words for the "tax scale", he must tick the box "2op" of declaration n ° 2042 . For a life insurance contract subscribed "abroad", the "8tt" box of the said declaration should be tied, and to specify the references of the contract, the effective date, its duration and the withdrawals made.
What future for regulated savings?

A parliamentary savings information mission, presided over by MP LR Gilles Carrez, is currently meeting in a "low rate" context, on the future of regulated savings, and this commission must make its conclusions in September 2020.

The mission focuses on the protection of household savings in the process of constant erosion of the remuneration, on regulated products (booklets A and LDDS) and on the funds in euros, the flagship product of life insurance, being observed that the household savings rate fries the 15%, but also on the decline in the margins of the financial actors and in particular the Caisse des Dépôts, and finally on the future of the financing of social housing, through the funds of Savings from the Caisse des Dépôts, themselves powered by the Livret A, with for the idea that regulated savings could be used to finance major infrastructure or energy transition projects, while institutional investors (insurers) could be more mobilized by social housing.

It is up to a "change of habits" of French savers (focused on "security": A and LDDS booklets) that MEPs attack in this mission of several months.