International tax affairs – FATCA/AEOI

Various internationally recognised standards and agreements aim to ensure that assets, such as those arising from life insurance policies or fund investments, are taxed in the taxpayer’s tax domicile to prevent cross-border tax evasion. Helvetia welcomes such measures and implements these standards within the framework of the applicable Swiss legislation.

Foreign Account Tax Compliance Act (FATCA)

Since June 2014, Switzerland has been bound by the agreement with the USA on the Foreign Account Tax Compliance Act (FATCA), which is part of US tax legislation. It requires foreign financial institutions to provide the US tax authorities with information on accounts held by US taxpayers.

This has a direct impact on Helvetia, which does not conclude any new contracts with individuals defined as “US persons” under FATCA. Existing customers classified as US persons are reported to the US tax authorities on an annual basis in accordance with the Swiss FATCA Implementation Act.

Further information on FATCA

Automatic exchange of information (AEOI)

Equally important for Switzerland is the global standard for the international automatic exchange of information in tax matters (AEOI), established by the Organisation for Economic Co-operation and Development (OECD). Alongside Switzerland, almost 100 countries have committed to adopting and implementing this standard. The Swiss Federal Act on the International Automatic Exchange of Information on Tax Matters (AEIA) has been in force since 1 January 2017.

As of mid-2018, Helvetia is required to report customers whose tax domicile is abroad and who hold assets (including the income derived from those assets) to the Swiss Federal Tax Administration (FTA) on an annual basis. The FTA then passes this information on to the corresponding foreign tax authorities of those countries which have concluded an agreement with Switzerland in accordance with the AEIA.

More information on the AEOI