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Old 14.01.2020, 14:40
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Taxation Swiss pension (2nd/3rd pillars) in Canada

I know that if I leave Switzerland and have the contents of my vested benefits account (Freizügigkeitskonto) paid out after I have left I pay withholding tax based on the canton in which the accounts are held.

If I was to move to Canada, can anyone tell me how that would be taxed in Canada? If I was moving to the UK for example, I know that it would not be taxed in the UK (according to the double taxation agreement). What's the situation in Canada?

Also, is the third pillar treated the same as the 2nd pillar?

Would be grateful for any information. Thanks.
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Old 14.01.2020, 14:56
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Re: Taxation Swiss pension (2nd/3rd pillars) in Canada

In certain cases if you are taxed abroad you can reclaim the Swiss withholding tax.
Search from from Q-IS https://www.estv.admin.ch/estv/de/ho...formulare.html

But it looks like in case of Canada this seems not be possible. ESTV Rundschreiben 166 https://www.estv.admin.ch/dam/estv/d...6-D-2019-d.pdf

This might be due that lump sum pension payments are only taxable in Switzerland.
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Old 14.01.2020, 15:25
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Re: Taxation Swiss pension (2nd/3rd pillars) in Canada

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In certain cases if you are taxed abroad you can reclaim the Swiss withholding tax.
Search from from Q-IS https://www.estv.admin.ch/estv/de/ho...formulare.html

But it looks like in case of Canada this seems not be possible. ESTV Rundschreiben 166 https://www.estv.admin.ch/dam/estv/d...6-D-2019-d.pdf

This might be due that lump sum pension payments are only taxable in Switzerland.
Thanks. I am ok with paying the withholding tax in Switzerland and not being able to reclaim it, if the lump sum payments are only taxable in Switzerland. That would be a decent option. It's also interesting to see that even regular pension payments seem like tgey would only be taxed in Switzerland, up to a maximum of 15%. Not quite sure how that would work practically...
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