You still have time to influence the tax burden for 2022. We hereby summarise the most important tips for you:

1: Payment into the 2nd pillar

Voluntary purchases into the 2nd pillar can be fully deducted from your taxable income and you also fill the gaps in your pension fund at the same time. You still have until the end of the year!

You can usually see the extent to which this is possible on your certificate of insurance. We recommend that you have the corresponding amount confirmed by your pension fund before paying in. Also clarify whether there is a claim for reimbursement on the voluntary purchases. If you are moving to Switzerland for the first time, you should be careful with the amount of the purchase, as the purchase is limited in the first few years after moving.

As this payment is fully deductible from your taxable income, we recommend that you plan it correctly with regard to the tax progression.

You generally achieve the greatest tax-saving by paying in between the ages of 50 and 60. This is when the money is left lying around for the least amount of time.

Capital can be withdrawn from the 2nd pillar in the following cases:

• Reaching retirement age (depending on the pension fund already as of the age of 58)
• Change to self-employment (not when using your own limited company or public limited company)
• Buying or investing in your own home
• When leaving Switzerland permanently - but not to a EU/EFTA state (partial withdrawal at most)
  
  

2: Payment into the pillar 3a

Payments into the pillar 3a are also fully deductible from your taxable income within the scope of the earned income.

The maximum payment amounts for the year 2023 are:

• Employees with pension fund membership: CHF 7’056
• Without pension fund membership: 20 % of annual earned income, max. CHF 35’280 (self-employed / pensioners up to 70 years)

The National Council and Council of States have adopted a motion that pillar 3a funds can retroactively be paid during 5 years. It can be assumed that this change in the law could be implemented quickly. However, it is somewhat risky to decide today not to make any payments in order to be able to benefit from them later.

Capital can be withdrawn from the pillar 3a in the following cases:

• Reaching retirement age (depending on the pension fund already as of the age of 58)
• Change to self-employment (not when using your own limited company or public limited company)
• Buying or investing in your own home
• When leaving Switzerland permanently - but not to a EU/EFTA state (partial withdrawal at most)

As with withdrawals from the 2nd pillar, withdrawals from the pillar 3a are taxed separately at a privileged rate. Due to the progression, larger withdrawals are taxed more heavily. Therefore it may make sense to divide the payments among several accounts resp. financial institutions. The withdrawal must be coordinated with possible withdrawals from the 2nd pillar.

3: Donations and contributions to political institutions

You can deduct up to 20% of your net income in the form of donations to swiss acknowledged non-profit institutions from your taxable income under direct federal tax; certain cantons apply different limit rates here. The minimum amount is CHF 100 This applies to monetary donations to domestic institutions with a charitable or public purpose. This means that the funds exclusively benefit third parties in an altruistic manner.

Furthermore, donations to political parties can be deducted from taxable net income up to a maximum amount of CHF 10,100 for direct federal tax. The legislator defines the exact designation of a political party. For cantonal tax deductions, the individual limits must be observed.

Titania Heimerl will be happy to advise you on this and other tax topics:

+41 41 226 30 52
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