Stop the tax penalty in pillar 3b. Tax the income share instead of the capital contribution in the case of a capital withdrawal
Silvia Hunziker
On 10 September 2018, the Council of States adopted the motion "Stop the tax penalty in pillar 3b. In the case of a capital withdrawal, tax the share of income instead of the capital contribution" with the following amendment: "The Federal Council is instructed to submit to parliament an amendment to the Federal Tax Act (DBG) and the Tax Harmonisation Act (StHG) in order to achieve a flexibilisation of the flat-rate share of income on all benefits (periodic benefits, surrender, refund) from life annuities and life insurance policies, adapted to the respective investment conditions.
The motion wants to achieve that in the case of surrenderable pension insurance policies under pillar 3b, the surrender sum (during life) and the premium refund (after death) are taxed at the actual share of income (departure from the improper 40 percent rule). As far as the surrenderable pension insurance policies of voluntary provision (Pillar 3b) are concerned, the principle that the mere repayment of a previous capital contribution does not constitute income within the meaning of Article 20 para. 1 lit. a DBG and is therefore to be excluded from taxation is being violated in an offensive manner: Like current life annuities, the lump-sum benefits (surrender sum during lifetime or premium refund on death) of pension insurance policies which serve as a form of provision are included in the tax assessment at 40 percent (Art. 22 para. 3 DBG, Art. 7 para. 2 StHG). The fiction according to which only 60 percent of the surrender sum and premium refund are capital repayments and consequently 40 percent are income is far from reality in today's interest rate environment. The Federal Supreme Court has also pointed out the overtaxation and called on the legislator to act (judgements 2C_906/2011 and 2C_907/2011 of 8 June 2012).
The National Council had already adopted the motion on 16 September 2014.
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