Got c permit and will do tax declaration for the first time, i might have 2nd pillar gaps, should i close them all?

Taxes
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Dear all I got my c permit and will to tax declaration next year for the first time. I might have some gaps on 2nd pillar, are those tax deductible? should i close them all when i get the first tax bill? Any downside? I only see upside.

Where can you see our gaps btw?

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Your questions have already been answered in the forum. Do some search, you will find them.

Yes

It depends :slight_smile:

You have tax benefits but your money will be locked till retirement (or if you buy a house, self-employment etc) with low interest rate. Upon retirement you will be taxed with a lower rate.
Careful if you leave Switzerland before retirement / retire abroad. The taxes of the other country could be huge.

Ask your 2nd pillar fund provider. You can see the gap usually in their statements

1 Like
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Also it’s not like the first pillar where the gaps are time based (e.g., didn’t contribute from March 2020 to May 2022), with an expiration date (5y iirc?).

There is only one gap: the difference between how much you can contribute right now given your exiting salary, age and pension fund, and how much you have contributed total in the past.
There might be a gap because, one or multiple of:

  • you didn’t contribute for some amount of time
  • your salary has increased over time
  • the pension fund factor has changed.

So the gap doesn’t expire based on time, but at the same time it can actually decrease if the last two points change downward.

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Also closing the gap later if your income (and tax rate) increases might make more sense.