On Jan. 25, SWI GVT, SWI Tax informed on flexibilization from 2025.
SWI GVT, SWI Tax informed on the forthcoming reform that provides for flexible adaptation of the taxation of pillar 3b life annuities to the investment conditions.
Follows SWI Tax Aug. 2022 updated on entry into force of tax laws, see #146168.
The Federal Council has already set Jan. 1, 2025, as the date of entry into force of the federal act on the taxation of life annuities and similar forms of pension provisions.
Flexible Taxation
Life annuities are currently taxed at 40% as a lump sum return but from 2025 the share of taxable return will be calculated at the maximum SWI FINMA's interest rate.
For life annuities contracts based on the code of obligations and foreign life annuity insurance, the taxable return will be based on the average return of 10-year bonds.
Insurers will, annually, declare life annuity insurance's benefits to cantonal authorities.
For the procedure to be fully digital, tax authorities will change their e-structure.
The cantons that have the right to levy inheritance tax on the refund of life annuity insurance premiums after death will have to modify their legislation in this area.
