Income tax return 2016
May 18, 2017 | 50,00 EUR | answered by Steuerberater Peter Jansen
Subject: Income tax return 2016
Hello,
In 1996, I took out a life insurance policy.
This contract ended in 2016.
The monthly contributions were EUR 5600.
The total payout was EUR 9480.
So the profit was a total of EUR 3880.
Is this profit subject to income tax?
Thank you in advance.
Sincerely,
Dear inquirer,
In accordance with the rules of this internet platform, I will answer your question as follows.
The life insurance contract you concluded in 1996 is considered an old contract (concluded before 01.01.2005) for tax purposes. You benefit from a favorable tax treatment regarding the payout. The payout in the event of a claim is tax-free if the following conditions are met:
- Contract duration of 12 years
- Premium payment period of 5 years
- Minimum death benefit of 60%
- No harmful encumbrance of the life insurance policy
Assuming that these conditions are met in your case, the profit is not subject to income tax.
Best regards,
Peter Jansen
Tax consultant
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