On July 10, 2025, the FTA published notification 025-DVS-2025 regarding the determination of the taxable income portion of foreign life annuity insurance policies.
The taxable income portion of benefits from foreign life annuity insurance policies and from life annuity and pledge agreements is determined during the year in accordance with Article 22 para. 3 lit. c DBG based on the annualized yield on 10-year Federal bonds increased by 0.5 percentage points during the relevant tax year and the nine preceding years.
The taxable income component can therefore only be definitively calculated after the end of the current tax period, as the annualized yield on ten-year federal bonds for the relevant tax year is only known at this point.
As the flexibilized calculation of the taxable income portion will be applied for the first time for the 2025 tax period, there is currently no taxable income portion for the previous year. However, this can be calculated using the formula in accordance with Art. 22 para. 3 lit. c DBG for 2024 and the nine previous years (2015 - 2023). The taxable income component calculated in this way is rounded to 7%.
The communication is available here.
