The cabinet is taking measures to prevent tax from being avoided on the payment of an annuity. For example, by starting to pay out the annuity after the statutory deadline. As a result of the measures, tax must also be paid on this. The measures will take effect on January 1, 2026, and will apply retroactively from April 25, 2025.

An annuity can be used to build additional income for later, alongside AOW and pension. During the accumulation phase, premiums are paid that can be deducted from income tax. From an agreed moment, the annuity is paid out in installments, on which tax must be paid. Conditions are set for both accumulation and payout. For example, the full amount cannot be withdrawn all at once, and the first payout must be made before the statutory deadline.

If the annuity does not meet these conditions, it can no longer be included in the tax assessment. No tax is paid on the payout of the annuity while premiums have been deducted during the accumulation phase. With the measures from the Fiscal Collection Act 2026, annuities will always be included in the tax assessment, even if they no longer meet the conditions. This prevents tax avoidance.

The bill was submitted today to the House of Representatives and is set to take effect on January 1, 2026. To prevent the annuity from being withdrawn tax-free between now and January 1, 2026, the measures will take effect retroactively. Tax must always be paid on payments made after April 25, 2025.