At its meeting on 24 November 2021, the Federal Council decided to flexibly adjust the taxation of life annuities to the investment conditions.
According to the Federal Council's press release of 24 November 2021, life annuities are taxed too highly in the current interest rate environment. Therefore, the Federal Council decided at its meeting on 24 November 2021 to flexibly adjust the taxation to the investment conditions.
In the case of life annuities, a share of 40 percent is taxed as a flat-rate income share, which results in overtaxation in the current interest rate environment. According to the Federal Council's proposal, the taxable income portion of life annuities is to be made more flexible. In future, the taxable income portion of the guaranteed pension benefit for life annuity insurance policies is to be calculated using a formula based on the FINMA maximum interest rate. Any surplus benefits are to be taxable at 70%. In the case of life annuities and pledges, the taxable income portion is now to be calculated on the basis of the average yield of ten-year federal bonds.
The dispatch on the taxation of life annuities and similar forms of pension provision now goes to parliament.
Further information and documents are available here.
