You can deduct payments made into the pillar 3a retirement savings account from your taxable income.
The following maximum amount applies for 2021
· If you have a pension fund: CHF 6’883
· Without a pension fund: CHF 34’416 (max. 20% of net income)
As the designated account requires a few days to establish you must take action before the 22nd December 2021.
If you have an existing pillar 3a account then you can pay by the end of the year however do check with your bank.
If you only pay tax at source you must submit an application by 31.03.2022 at the latest. (no exceptions)
If you complete a regular Swiss tax form the payment can be included on the form.
Generally it is not advantageous for a U.S. tax payer to have a pillar 3a account. Please ask your U.S. tax advisor.
If you have any questions simply send me an email.
Brien Donnellon
