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Old 05.08.2020, 00:15
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Job restructuring, Lump Sum and Tax

Hey everybody,

My company is undergoing restructuring and has shared a social plan with employees. I am evaluating tax optimization oppurtunities on the lump sum amount provided in the social plan. One such possibility is to move to a low tax canton (Zug or Schweiz) before the year end. From lease perspective this works for me, as the current lease for my apartment is coming to an end soon.

The potential challenge, which I anticipate, may be the contonal approval. I have an un-restricted B Permit (Non-EU). If anybody has had similar experience moving Cantons on B permit or with social plan tax optimizaiton, I would love to hear from you.

Cheers
Aby
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Old 05.08.2020, 08:11
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Re: Job restructuring, Lump Sum and Tax

Put a part of my lump sum in pillar 2, gave me enough tax relief. Good luck!
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Old 05.08.2020, 11:38
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Re: Job restructuring, Lump Sum and Tax

thanks. Indeed, that's part of the plan. My Pension contact in the company informs me there is an annual cap of what I can contribute in Pillar 2 ~CHF 25k, which will limit the tax-saving.
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Old 05.08.2020, 11:46
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Re: Job restructuring, Lump Sum and Tax

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thanks. Indeed, that's part of the plan. My Pension contact in the company informs me there is an annual cap of what I can contribute in Pillar 2 ~CHF 25k, which will limit the tax-saving.

That is when you have lived here less than 5 years. Will you hit the 5 year mark any time soon? After that the amount you can pay in is much much higher.
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Old 05.08.2020, 14:17
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Re: Job restructuring, Lump Sum and Tax

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Put a part of my lump sum in pillar 2, gave me enough tax relief. Good luck!
Surely you have to pay it whilst still working?
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Old 05.08.2020, 14:20
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Re: Job restructuring, Lump Sum and Tax

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Surely you have to pay it whilst still working?

I paid it in the last month I worked for that company (salary on 25th, payment to Pillar 2 on 25th). After that I transfered all to the pension fund of the next company I work for.
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Old 05.08.2020, 20:33
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Re: Job restructuring, Lump Sum and Tax

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That is when you have lived here less than 5 years. Will you hit the 5 year mark any time soon? After that the amount you can pay in is much much higher.
Unfortunately in this case, less than 5 years, so I will contribute what I can at this stage.
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Old 06.08.2020, 20:48
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Re: Job restructuring, Lump Sum and Tax

Be careful as this could be seen as tax evasion! Especially if you have no intent to settle durably in that low tax canton.
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Old 06.08.2020, 20:51
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Re: Job restructuring, Lump Sum and Tax

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Be careful as this could be seen as tax evasion! Especially if you have no intent to settle durably in that low tax canton.
Not a big deal unless the TAX evaded exceeds 200k or is it 300k a year
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