CONTENTS
Concept of Offshore and Onshore
Switzerland - a smarter choice
ANNUITY
Tax treatment given to swiss annuity
Swiss annuities enjoy tax free status in switzerland. Let us make a quick comparison....
| 1. Swiss Withholding Tax (35%) | Exempt |
| 2. Capital Gains | No |
| 3. Excise taxes | No |
| 4. Inheritance tax | No |
| 5. Stamp duty | No |
| 6. Swiss Income taxes | No |
| 7. US tax deferral | Exempt |
| 8. US Withholding tax | Exempt |
If the benefits are so huge, then why not it is widely available and less promoted?
Just because if these insurance companies from switzerland, promote these products in your country, they have to obey your countries local rules and insurance regulations. If they abide your country rules, you lose your privacy and secrecy. Swiss insurance companies maintain a low company profile and these insurance products little known to only few people outside switzerland. However you are free to approach any insurance company in switzerland and make an investment. Neither any law would prevent you nor any questions asked!
For U.S Citizens
There is no need for US citizens to report swiss annuities to IRS in the Form 1040, as annuities are considered to be an investment and not a foreign held bank account. Both fixed and variable swiss annuities and both qualify for IRS tax deferral, until your annuity is fully liquidated. Also, there is no need to pay any taxes for your annuity until it is fully liquidated.
Normally, IRS requires you to file Form 720 for 1% excise tax (which is 1% of premium paid) if you buy a foreign held annuities. But the recent tax treaty with switzerland eliminates this tax.
If you plan to withdraw your payments before 59 1/2 yrs, IRS might penalise you to pay additional 10% of the already taxed earnings. Please consult your tax advisor for more information.
Interested in annuity? Apply now
Swiss Money Secrets : How You Can Legally Hide Your Money In Switzerland