The taxation of life annuities in pillar 3b will be flexibly adjusted to the investment conditions when it comes into force on January 1, 2025.
Until 31.12.2024: Until now, a 40% share was taxed for life annuities.
As of 01.01.2025: In future, the taxable income portion of the guaranteed annuity benefit for life annuity insurance policies will be calculated in accordance with the Insurance Contract Act depending on the FINMA maximum interest rate. Any surplus benefits will be taxable at 70%.
In the case of life annuities and pledges under the Swiss Code of Obligations and foreign life annuity insurance policies, the taxable income portion is now determined on the basis of the average yield of ten-year federal bonds.
Insurance companies now report benefits from life annuity insurance annually to the cantonal tax authorities via the Federal Tax Administration (FTA).
The full announcement, dated January 25, 2023, is available here.
