Art. 7 Federal Law of October 13, 1965, on Withholding Tax (WTA)

Withholding tax on insurance benefits applies to capital benefits made under life insurance, as well as annuities and pensions, if the insurance is part of the insurer's Swiss portfolio and if, at the time the insured event occurs, the policyholder or a rightful claimant is domiciled in Switzerland.

The transfer of insurance from a Swiss portfolio to a foreign portfolio, as well as the assignment of insurance claims by a person domiciled in Switzerland to a person domiciled abroad, are treated, for withholding tax purposes, as payment of the insurance benefit.

Any payment of assets as per Art. 5, para. 1, let. d, is also considered as a capital benefit made under a life insurance policy, regardless of the reason for the payment.