Are surplus balances and fund balances from disability insurance taxable?
July 28, 2021 | 30,00 EUR | answered by Steuerberater Knut Christiansen
In March 2020, I terminated my occupational disability insurance (taken out in March 2003) and subsequently received a fund credit as well as surplus credit. Are these payments taxable? Where should I enter them in the income tax return (Attachment KAP)?
Good day and thank you for using ask-a-tax-expert.com!
Regarding your question, I would like to provide you with the following information.
In general, your insurance policy is considered an old contract that was signed before 2005. If the contract has been in effect for at least 12 years, the payout would be tax-free. If the payout is not tax-free, the insurer would have to tax the corresponding earnings at 25% withholding tax upon payout and issue a certificate accordingly. Please contact the insurer again if you have not received a statement on this. If the insurer cannot provide you with information, please do not enter any values in your tax return. However, please inform the tax office that you consider the payout amounts to be tax-free, as the contract was signed before 01.01.2005 and therefore § 20 (1) No. 6 of the old version can be applied. According to this, the earnings are tax-free (for contracts signed after 01.01.2005, only half is tax-free if other conditions are met).
I hope this answers your question, but feel free to ask further questions at no cost.
I would like to point out that this forum cannot replace comprehensive and personalized tax advice, but is mainly intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Best regards,
Knut Christiansen
Tax Advisor
