I have put the max into my pillar 3 (6.8k) which will hopefully save some tax...


Is there anything else I should before 2020 ends that might be useful?


thanks

That's impossible to answer without knowing your situation in detail.

You could put your entire income into your pillar 2 and pay no tax, but that sucks as an investment longer term.

Will you be doing a tax return - you said in another thread you're on ca. 120k so it could go either way, but on that salary the biggest thing is making sure you claim all the potential allowances (travel ticket, bike allowance, meals allowance, any other professional allowance, etc etc).

Hmm I thought that on a B visa I was not allowed to do tax returns until I moved to a C visa. Though I suppose I will have to claim back the pillar 3 tax that I have paid so will look into it. Thanks for the suggestion. The biggest trouble I have is researching stuff as its all in German and Google translate doesnt always work!


I plan on staying in Switzerland so not afraid of making a long term investments. I would look to eventually buy a house so if I can pay into tax savers that I can then take back out then would make sense to me.

You are always allowed to do tax returns. However, it's optional with a B permit. But if you want to take advantage of the Pillar 3, I guess it is a requirement.

Not optional on a B permit, optional only if you earn below the 126k CHF. Above that you will have to file every year.

Okay so I am above this. More paperwork!!!! I will have to do some proper research on this then if it is mandatory as I do not want to take the p1ss out of a country I have just moved to.

Is that true?

I thought there was a buyback limit of 20% of the annual insured salary during the first five years you’re in Switzerland.

For this tax year you still can only request a simplified return in case you are paying tax at source and earn less than CHF 120k per year (not 126k
https://www.zh.ch/de/steuern-finanze...zstb-93-2.html ).

With tax year 2021 the simplified return is abolished and anyone requesting a tax correction has to to the full deal. 2021 Changes in tax at source reassessment [Kreisschreiben 45]

@dudes Download the PrivateTax Software for the last tax year and play with it.
https://www.zh.ch/de/steuern-finanze...tml#2141452361

In addition read the Wegleitung 2019
https://www.zh.ch/content/dam/zhweb/...9_HA%20DEF.pdf

If Google is not helpful with translation, you might give www.deepl.com a try. It is surprisingly good.

If you do not get your tax papers by begin/mid of March contact your communes tax office. If you still do not get the papers before end of March
download and fill in the request for a simplified return. This form must be sent back before March 31st.
https://www.zh.ch/de/steuern-finanze...tml#-792208150

__________________
On Hiatus- Normal operation will resume 22.02.2022 22:02:20.22

Correct. And after that it is unlimited / up to what the pension plan allows. However it is not the most tax efficient way.

So if I was planning on buying a house in 2 years, I could put 20% of my salary for 2020, 2021 and 2022 in.........and then take it out to buy the house and save the tax on this amount? Seems like a no brainer? Surely there must be a catch? (with the caveat that the tax savings might not be the greatest return on that money against the markets etc, but I am prepared to accept this as I am banned on most derivative/equity trading anyway in my role).

There is a three year blocking period, if you withdraw within that period there are negative tax implications.

But I'm not sure if that applies to house purchase.

Also bear in mind that you have to pay it back before you retire or if you sell the property.

No, if you paid in extra you have to wait 3 years before you can use that to buy a house.


Or if you do, you would lose the tax advantage.


https://www.finanzmonitor.com/2-saul...pensionskasse/


Link in German

if you have lots of cash in your bank accounts, take it out at the end of the year to avoid wealth tax.

I've never bothered.

Nothing to stop you pledging the pension assets instead of withdrawing them though, is there?

No but then they're stuck in your pillar 2 with 1% growth...

I don't really understand the point in pledging pillar 2. I will withdraw.

And do what with it? It'll still be declarable as real cash.


You can however pay on account your estimated tax bill if you're on a C permit.

That would be "evade", not "avoid", as by law it is still declarable wealth.

Aren't disability benefits, and widow's and orphan's pension based on the accrued pension savings?

And, you still get the benefit of the annual interest, which in my 2nd pillar has been 4% on average during the previous 5 years.

I want your pension fund! - 4% is good (for a pillar 2).

Also your pension fund doesn't count towards wealth tax, so there is a small gain there vs withdrawing the funds.