The Zurich Cantonal Tax Office has amended its directive on the taxation of lump-sum benefits from pensions and insurance for individuals (sections 22, 37 StG)(ZStB no. 22.1).
The amendment to Section 37 of the Tax Act, which comes into force on 1 January 2022, has been included.
According to the amended § 37 StG, lump-sum benefits from pension plans are now taxed at the rate that would result if an annual benefit of one-twentieth of the lump-sum benefit (until 31 December 2021: one-tenth of the lump-sum benefit) were paid instead of the lump-sum benefit. Furthermore, the amendment of § 54 para. 4 of the Tax Ordinance ZH was included in the directive. According to this amendment to the ordinance, which entered into force on 1 February 2020, interest must be paid on lump-sum pension benefits from the end of the relevant calendar year.
Further information is available here.
