On 4 April 2020, the Federal Council adopted a consultation draft that aims to adjust the taxation of life annuities.
A share of 40 percent of life annuities is currently taxed as income, which is too high in the current interest rate environment. In future, it should be possible to adjust the taxable income portion flexibly to the interest rate environment. In the case of life annuities/pledges, the taxable income share is to be calculated using a formula dependent on the yield of 10-year government bonds. In the case of life annuities, a formula dependent on the FINMA maximum interest rate is to be applied.
The financial consequences can only be roughly estimated. For the Confederation, the resulting revenue shortfall is approximately CHF 10 million, and for the cantons and municipalities approximately CHF 50 million.
The press release and all documents are available here.
