Supplementary funded pension

(1) Income tax is charged on payments made to a unit-holder or the successor of a unit-holder on the basis of an insurance contract for a supplementary funded pension or from a voluntary pension fund, taking into account the specifications provided for in subsections (2)–(7). Income tax is charged also on negative changes in the provisions formed pursuant to the provisions of subsection 28 (1¹) with a view to securing a supplementary funded pension.
[RT I, 18.02.2011, 1 - entry into force 01.01.2012]

(1¹) Payments do not include the surrender value of a cancelled insurance contract for a supplementary funded pension in the case provided for in subsection 63 (5²) of the Funded Pensions Act and the redemption of units of a voluntary pension fund upon the switch of the units or entry into an insurance contract for a supplementary funded pension pursuant to § 64 of the Funded Pensions Act.
[RT I, 18.02.2011, 1 - entry into force 01.01.2012]

(2) The rate provided for in subsection 4 (2) is applicable to the following payments made by an insurer holding an activity licence in a Contracting State to a policyholder under an insurance contract for a supplementary funded pension which meets the conditions provided for in § 63 of the Funded Pensions Act or an equivalent insurance contract:
[RT I 2006, 28, 208 - entry into force 01.07.2006 - introductory sentence part of subsection (2) applied retroactively as of 1 January 2006]
1) payments made by the insurer to the policyholder after the policyholder has reached 55 years of age but not before five years have passed since the entry into the contract;
2) payments made by the insurer in the event of the total and permanent incapacity for work of the policyholder;
3) payments made in the event of liquidation of the insurer.

(3) The rate provided for in subsection 4 (2) is applicable to the following payments made to a unit-holder of a voluntary pension fund founded in Estonia on the basis of the Funded Pensions Act or a voluntary pension fund operating in a Contracting State on equivalent bases:
[RT I 2006, 28, 208 - entry into force 01.07.2006 - introductory sentence part of subsection (3) applied retroactively as of 1 January 2006]
1) payments made after the unit-holder has reached 55 years of age but not before five years have passed since the acquisition of units which are redeemed in order to make the payments;
2) payments made in the event of the total and permanent incapacity for work of the unit-holder;
3) payments made from a voluntary pension fund in the event of liquidation of the pension fund.

(3¹) If units of a voluntary pension fund are switched for units of another voluntary pension fund, the five-year term shall be calculated as of the entry to the securities account of the units of the voluntary pension fund which are redeemed upon the switch. If units of a voluntary pension fund are bequeathed, such term shall be calculated as of the date of entry of the units to the successor's securities account.
[RT I 2008, 48, 269 - entry into force 14.11.2008]

(4) Income tax is not charged on a pension paid to a policyholder on a regular basis pursuant to an insurance contract specified in subsection (2) after the policyholder has attained 55 years of age or after his or her total and permanent incapacity for work has been verified, on the condition that the insurance contract prescribes that corresponding payments shall be made in equal or increasing amounts at least once every three months until the death of the policyholder.
[RT I 2006, 28, 208 - entry into force 01.07.2006 - subsection (4) applied retroactively as of 1 January 2006]

(5) Income tax is not charged on insurance indemnities paid in the event of death on the basis of an insurance contract for supplementary funded pension.
[RT I 2006, 28, 208 - entry into force 01.01.2007]

(6) Subsections (2) and (4) also apply to payments made by insurers to whom an activity licence has been issued in a state not specified in subsection (2) upon compliance with both of the following conditions:
1) the insurer has the right to enter into insurance contracts for a supplementary funded pension in Estonia either on cross-border basis or through a branch;
2) an international agreement is in force between Estonia and the state that issued the activity license to the insurer, which provides the Tax and Customs Board with the opportunity to receive from the tax authority of this state the information necessary for the application of the tax rate provided for in subsection 4 (2) and the tax exemption provided for in subsection (4) of this section.
[RT I, 18.02.2011, 1 - entry into force 01.01.2012]

(7) Subsections (3) and (3¹) also apply to payments made to unit-holders of a voluntary pension fund operating on the equivalent basis in a state not specified in subsection (3) upon compliance with both of the following conditions:
1) the units of pension fund can be offered in Estonia on cross-border basis;
2) an international agreement is in force between Estonia and the state of the place of business of the pension fund, which provides the Tax and Customs Board with the opportunity to receive from the tax authority of this state the information necessary for the application of the tax rate provided for in subsection 4 (2).
[RT I, 18.02.2011, 1 - entry into force 01.01.2012]

Дата добавления: 2015-11-14