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Old 29.11.2014, 22:57
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Time to pay taxes after vested benefits payout (I left Switzerland for good)

Hello,

I left Switzerland for good and I managed to cancel my vested benefits account. I already received the money. I also received the payout form stating the following:

Vested benefits assets: a) LOB CHF b) Exc. obl CHF c) Total CHF
Interest: a) LOB CHF b) Exc. obl CHF c) Total CHF

There was no witholding tax paid, yet. The note also clearly states that payments without a withholding tax deduction are declared to the tax authoritites.

According to the double taxation contract between the Czech Republic and Switzerland, I guess I declare interest in the Czech Republic and the vested benefits assets are probably subject to Swiss taxation.

The problem is that I have no idea how to declare and compute the taxes. I lived in Switzerland only for a very short time and I had taxes directly deducted from my salary. I lived in Vaud and my vested benefits foundation is located in Basel-Stadt.

What steps do you recommend, please? What does LOB and exc. obl. mean? Do I need to worry about dividing the total between these two or do I need to worry only about the total amount?

Thanks,
Kalel
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Old 30.11.2014, 03:29
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

In all likelihood you received a letter along with the form, which shows a contact person. Contact him/her. Probably an email with a short explanation would be the best starter, maybe suggest a phone call and if so, also list the language(s) you would be comfortable using.
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Old 30.11.2014, 08:31
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

I am fairly certain that the bank that paid you the money has deducted money, and paid tax on the vested benefit you received.

Do you really think they would let you take the money, and leave without paying any tax? Maybe the bank made a mistake, but consider the tax has been paid, maybe the sum paid to you was too low to attract tax.....

http://www.liberty-vorsorge.ch/en/ve...moving-abroad/

If you have moved to the EU (Czech Republic) you won't be taking your pension fund with you, only your non compulsory savings,

http://www.liberty-vorsorge.ch/en/ve...thholding-tax/
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Old 30.11.2014, 11:07
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

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I am fairly certain that the bank that paid you the money has deducted money, and paid tax on the vested benefit you received.
Well, I supposed this was going to happen, too.

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Do you really think they would let you take the money, and leave without paying any tax? Maybe the bank made a mistake, but consider the tax has been paid, maybe the sum paid to you was too low to attract tax.....

http://www.liberty-vorsorge.ch/en/ve...moving-abroad/
It is possible that there was no deduction because the sum is too low, it is less than 1000 CHF. So according to your link I should pay the tax according to Basel-Stadt rules.

I found a fund located in Schwyz that provides an online calculator for withdrawals http://www.pens-expert.ch/en/pensfre...calculator.php. So if my fund was located in Schwyz, I would had to pay some taxes which makes me think that I should have paid the tax in Basel-Stadt, too.

The final sheet that I received from the bank states that the witholding tax is 0 CHF and that the payment without a withholding tax deduction will be declared to the Swiss tax authorities.

I found http://www.steuer.bs.ch/steuerrechner-np-2013-2014.htm and if I put the sum of my savings to any row, there is no tax. So I guess that maybe I shouldn't pay any tax after all but my German is nonexistent

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If you have moved to the EU (Czech Republic) you won't be taking your pension fund with you, only your non compulsory savings,

http://www.liberty-vorsorge.ch/en/ve...thholding-tax/
I presented my case to LOB, they investigated for couple of months and finally let me cancel the 2nd pillar account. I already received the savings. AFAIK I received all of them.

I guess that the final sheet lists compulsory savings as "LOB" and non compulsory as "Exc. obl.". Do I understand it correctly or am I missing something?
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Old 30.11.2014, 13:59
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

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It is possible that there was no deduction because the sum is too low, it is less than 1000 CHF.

The final sheet that I received from the bank states that the witholding tax is 0 CHF and that the payment without a withholding tax deduction will be declared to the Swiss tax authorities.
This sounds right. I don't remember the exact figure but you don't pay tax on lump-sum payments of less than the figure (which is just over CHF 1000 I think). To be honest, I didn't even think they were declared to the tax authorities.
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Old 30.11.2014, 14:11
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

OK. Thank you both.
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Old 06.03.2015, 19:00
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

Kalel posted a couple of links to companies that can help get your vested benefits out, as they are based in Schwyz there is the benefit of lower tax on the fund.
Can I ask if anyone has used them as I am not sure how to tell if they are legitimate and won't disappear with my funds.
Any help would be appreciated. Thanks
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Old 06.03.2015, 21:06
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Re: Time to pay taxes after vested benefits payout (I left Switzerland for good)

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Kalel posted a couple of links to companies that can help get your vested benefits out, as they are based in Schwyz there is the benefit of lower tax on the fund.
Can I ask if anyone has used them as I am not sure how to tell if they are legitimate and won't disappear with my funds.
Any help would be appreciated. Thanks
Transferring a pension will cost money, Schwyz is sometimes but not always the lowest withholding tax, it depends on fund size.

Your pension provider should tell you if it's worth moving & will organise it if it's worth it.
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