I have a question regarding the tax declaration of a life insurance policy. I would like to avoid/fix a past mistake and hence asking for the help/clarity via this separate thread (as a first timer).
Background: In 2015 I bought a life insurance policy in my home country (non-EU) and paid 5 premiums until 2019 (say total premium 15k CHF). The insurance policy is of type Unit Linked Insurance Plans (ULIPs) with a premium duration of 5 years and maturity duration of 10 years.
I paid these premiums in my home country using money that I earn in Switzerland (2015 to 2019). I have not received dividends or interest so far. I am supposed to get lumpsum in 2025. Let’s say the insurance fund value today is 20.5k CHF.
Since 2020 I started paying taxes in Switzerland but I didn’t realize/forgot to declare this policy during the tax declaration of the last 2 years. I have the following questions:
If I am not mistaken, a ULIP life insurance policy is similar to pillar 3b in Switzerland and it’s subject to wealth tax. Right?
In my home country, the financial year is from 1st April 2022 to 31st March 2023. This means I have a policy statement & fund values for 31st March 2023. Is it Ok to submit such a statement and use the value from March 2023? Or, should I precisely calculate the fund value on 31st December 2022 by checking historical rates? (I have same problem for bank accounts from my home country!)
As this insurance policy was not declared in the last tax declaration and premiums were paid from my foreign bank accounts (during 2015-2019), do you think I should write a short note mentioning I forgot to declare this last year and also provide some proofs showing money used for premiums was from my Swiss income?
A minor thing: In Vaud tax website, in life insurance declaration there are two fields: Année de conclusion / Year of Conclusion (facultatif) and Année d’échéance / Maturing year (facultatif). What’s the difference between these two dates? In my case, I only know the “maturity date” of my policy:
I guess even if tax office will apply wealth tax retroactively, I guess impact won’t be huge considering the amount is just ~20k CHF.
Probably simple/naive questions but thought better to ask them here in advance!