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Old 27.10.2014, 07:51
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Extra Pillar 2 contribution tax savings

Hi,

I got married recently and my wife is really upset about her new tax rate so Im thinking of having her put some money into her Pillar 2 pension. Normally I'd be totally against it. But her company has a private fund that performs very well and she is so risk averse with her savings that the ROR is pretty attractive comparatively.

But its not clear to me if there is really long term tax advantage. Does anybody have experience taking out contributions and extra contributions for house purchase or when leaving Switzerland? I seem to remember that the exit taxes of getting the money out make the contribution and risk of regulatory changes not worth it. But its got to be lower than the rate we are paying now.

I am really wary of the fact that if money is left in the pension that regulations could change that make it even less attractive to have the money there. This happened to a friend who put money in thinking he would use it for a house. In the end after a few years the tax regime changed and it really messed with his budget during construction since he had to pay a lot more in tax.
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Old 27.10.2014, 08:36
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Re: Extra Pillar 2 contribution tax savings

Pensions defer tax. In theory the tax you save when you pay in is greater that you pay when taking out.

If you take out a chunk to build/buy you are liable for tax on it.

Your wife's tax rate is so high due to being married at the bizarre way that Quellensteuer works when married. Saving tax on extra P2 contributions will only happen if you complete a tax return. And if you don't know how to do that you'll need to get a tax consultant to fill it out (at least for the first year).
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Old 27.10.2014, 17:01
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Re: Extra Pillar 2 contribution tax savings

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Pensions defer tax. In theory the tax you save when you pay in is greater that you pay when taking out.

If you take out a chunk to build/buy you are liable for tax on it.

Your wife's tax rate is so high due to being married at the bizarre way that Quellensteuer works when married. Saving tax on extra P2 contributions will only happen if you complete a tax return. And if you don't know how to do that you'll need to get a tax consultant to fill it out (at least for the first year).
Thanks. We both already complete them (we have to due to her permit status) so thats no problem.

Just found out that yes there is an exit task but its much lower than the income tax rate. And if you then replace the money (due to additonal contirbution) you get the exit tax back. So its really a pure tax shield if you trust the system.

question is how much. Does anybody know where to find the graduation levels of taxation, which show how much the % rate of tax goes up with each level of taxable income?
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