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| I am not sure I follow you, FMF. I have read that the Swiss authorities will assess a final tax on the pension asset (when one leaves for the US) and that tax rate is contingent on where one resides canton-wise.
I have never read that this tax can be "reclaimed" from the Swiss tax authorities; I just assumed whatever tax we paid in Switzerland would offset our US tax liability for that calendar year.
Would you clarify? Many thanks!  | |
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I am in a similar situation, moving from CH back to the US. I have a professional firm helping with the tax situation and here is what they told me and what is happening:
- They told me to get a departure note from the commune, and with that ask the pension fund to pay out before the date of departure. This way I can avoid US taxation.
- The pension fund said no, we can only pay after the departure date as you need proof that you actually left.
- The professional tax advisors told me this is weird and they never had this happen. They also told me if I get the payout before the departure date I will be liable for CH taxes, which will not be witheld as I have a c-permit and am not taxed at source.
- Now I will be taxed at source with the payout as I technically have departed.
- It will be fully taxed at US rates, but I can take the CH paid taxes as a credit, "only" paying the delta.
- In your case, you say you have paid US taxes on your pension contribution, i.e. you have declared them as income. Therefore you assume you will not be taxed on it again. I would really check this to be sure if I were you.
- Lastly, I was told I will not get a physical refund, but rather can take the taxes paid in CH as a credit to my US taxes. I find this quiet weird, as I am not a Swiss tax resident anymore upon payout. I will need to double check this. In your case it does not matter, as if you would get a refund you cannot take the credit. It is more left pocket/right pocket.