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  #21  
Old 21.01.2021, 08:34
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Re: 3d Pillar on B permit

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Well it depends on where you are going. For many places you can withdraw pillar 2 in full when you leave Switzerland and realise (most of) the tax saving. Even in the EU Iirc you can withdraw if you don't work after moving.
Yes, and you need to consider tax in the country you are moving to and tax in Switzerland for pay out. Only then you can calculate whether it is worth buying in before leaving to save tax when still here.
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  #22  
Old 22.01.2021, 10:58
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Re: 3d Pillar on B permit

This is the website for ZH canton where someone could do a simplified correction for income declaration when paying into Pillar 3/ https://www.services.zh.ch/basis/index . Specifically "Neuveranlagung Quellensteuer" was the optioin to be used for that.
When used this for 2018 tax year, the money was returned to me in 7-8 months after submission. However, for 2019 tax year having used the same option, I still have not received any money back and when contacted Steueramt they told me the proccess has changed and it will take longer as it takes for other earning more than 120k.

So can we all agree that this will not be anymore possible for people earning under 120k (Quellensteuer)? That means we would need to go through the normal process as everyone else does, probably translating into more taxes payable and consequently less money received back due to Pillar 3 contributions.

Can anyone confirm this is the case? An official link would be great to have if it can be provided cause I could not find it anywhere.

Last edited by Rozelina; 22.01.2021 at 11:01. Reason: extra points to be added
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  #23  
Old 22.01.2021, 15:44
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Re: 3d Pillar on B permit

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So can we all agree that this will not be anymore possible for people earning under 120k (Quellensteuer)? That means we would need to go through the normal process as everyone else does, probably translating into more taxes payable and consequently less money received back due to Pillar 3 contributions.
That's also my understanding. Such a pity, because Switzerland is practically killing the 3 pillar scheme by this - at least for tax-at-source people. Even more will be surprised by the pension gap...
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  #24  
Old 22.01.2021, 15:47
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Re: 3d Pillar on B permit

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So can we all agree that this will not be anymore possible for people earning under 120k (Quellensteuer)? That means we would need to go through the normal process as everyone else does, probably translating into more taxes payable and consequently less money received back due to Pillar 3 contributions.

Can anyone confirm this is the case? An official link would be great to have if it can be provided cause I could not find it anywhere.
Still possible and depending on your situation you might even save more taxes. You will have to do the math, or the taxes to be more precise. For official information see:

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Starting with these year there is a major change in tax at source reassessment (See 2021 Changes in tax at source reassessment [Kreisschreiben 45] ) In the past you could do a simplified tax return when you had paid into pillar 3a. Now, you must do a full return and, as far as I understand, you will be regularly taxed. Depending on your actual situation this might not be as favorable as you might think.
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  #25  
Old 22.01.2021, 15:49
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Re: 3d Pillar on B permit

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That's also my understanding. Such a pity, because Switzerland is practically killing the 3 pillar scheme by this - at least for tax-at-source people. Even more will be surprised by the pension gap...
Its killing the 3rd pillar for tax-at-source for (some) people who live in Zurich city perhaps. I wouldn't go broader than that.

If you earn below 120K, your tax rate would be pretty low anyway - so the saving is hardly huge. Arguably not worth locking your money away and with limited investment choice.
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  #26  
Old 23.01.2021, 20:08
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Re: 3d Pillar on B permit

Since we are on this, I have a similar question regarding taxes. Is it worth going from permit B to C only in 5 years considering that once someone gets C needs to declare income as everyone else regardless the annual salary ? or is it better off for someone to remain on B as long as possible due to being taxed at source?
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  #27  
Old 23.01.2021, 20:13
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Re: 3d Pillar on B permit

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Since we are on this, I have a similar question regarding taxes. Is it worth going from permit B to C only in 5 years considering that once someone gets C needs to declare income as everyone else regardless the annual salary ? or is it better off for someone to remain on B as long as possible due to being taxed at source?
That will depend on where you live. Quellensteuer is meant to be an average tax rate of the canton, so if you live in a municipality that has lower tax than the cantonal average, you save a bit. And vice versa. Zurich city is quite high.
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  #28  
Old 23.01.2021, 20:14
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Re: 3d Pillar on B permit

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Since we are on this, I have a similar question regarding taxes. Is it worth going from permit B to C only in 5 years considering that once someone gets C needs to declare income as everyone else regardless the annual salary ? or is it better off for someone to remain on B as long as possible due to being taxed at source?
Depends on a lot of things, where you live, your worldwide income, whether you have items you could deduct, etc etc etc
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  #29  
Old 28.01.2021, 16:26
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Re: 3d Pillar on B permit

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ATTENTION!
According my UBS internetbank notification (that's where I have a 3rd pillar account), it won't be possible anymore to get a refund on pillar 3a payments via a simplified tax form anymore (starting from 2021). Whoever wishes to deduct need to fill a complete declaration. Couldn't find the official source yet, pls link it if you happen to find it.
I'm still hesitant if I should make payments as I might end-up paying more with full declaration :/
I also got the message from the Vaud tax office.

"Nous tenons à vous rendre attentif que pour la période fiscale 2021, il n’y aura plus la possibilité de déposer une déclaration d’impôt simplifiée pour faire valoir des déductions supplémentaires à celles contenues dans les barèmes de l’impôt à la source.

En effet, celles-ci devront être revendiquées par le biais d’une taxation ordinaire ultérieure (pour autant que les conditions d’accès à une telle taxation soient remplies dans le cas d’espèce) au moyen du formulaire qui sera disponible sur notre site internet courant 2021. Ce formulaire devra nous être retourné avant le 31 mars 2022."

So I guess it is no longer worth while to have a pillar 3 if you are on a B permit?

edit: nevermind I just read the second page of this tread.
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  #30  
Old 28.01.2021, 16:35
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Re: 3d Pillar on B permit

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So I guess it is no longer worth while to have a pillar 3 if you are on a B permit?
As it was said:
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Depends on a lot of things, where you live, your worldwide income, whether you have items you could deduct, etc etc etc
You will have to do the math, or should we say the tax return.
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  #31  
Old 29.01.2021, 09:09
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Re: 3d Pillar on B permit

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I also got the message from the Vaud tax office.

"Nous tenons à vous rendre attentif que pour la période fiscale 2021, il n’y aura plus la possibilité de déposer une déclaration d’impôt simplifiée pour faire valoir des déductions supplémentaires à celles contenues dans les barèmes de l’impôt à la source.

En effet, celles-ci devront être revendiquées par le biais d’une taxation ordinaire ultérieure (pour autant que les conditions d’accès à une telle taxation soient remplies dans le cas d’espèce) au moyen du formulaire qui sera disponible sur notre site internet courant 2021. Ce formulaire devra nous être retourné avant le 31 mars 2022."

So I guess it is no longer worth while to have a pillar 3 if you are on a B permit?

edit: nevermind I just read the second page of this tread.
Depending on your situation, you may not be given the opportunity to file a full tax return (bold above)
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  #32  
Old 29.01.2021, 09:53
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Re: 3d Pillar on B permit

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Depending on your situation, you may not be given the opportunity to file a full tax return (bold above)
I think this is not the case for the 2021 tax year anymore, anybody can fill a full return from now on. The downside is: you fill it once, you have to fill it forever.
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