I came to this beautiful country on September and started to work.
I opened an account with VIAC and already invested some money (3.8k). Since I will work only for 4 months with around 35k of earned income for the year of 2020, does it make sense to contribute any more to the 3a? or am I better off just investing in IB from now on?
Make sure to declare your 3a contributions at the beginning of each year, so you’ll get a tax refund on the already paid income taxes. You can find the forms on the webpage of your local tax office.
I currently living in Schaffhausen.
First month it was 17.3% (because of relocation package) and then second month (and moving forward) will be 12.84%.
-> Quellensteuer-Tarifkorrektur (2nd last row) -> Beiträge an anerkannte Formen der gebundenen Selbstvorsorge CHF (Säule 3a) on the 2nd page
I don’t know if they provide a version in a different language.
So you’ll save ~13% in taxes. So if you pay the maximum (6’826 CHF), you’ll probably get a refund of around 900 CHF. If you earn more in the future, you’ll get a higher tax rate and thus also save more taxes by paying into your 3rd pillar.
Does somebody have a reference to confirm that it’s prorated?
My wife moved to Switzerland in October and I don’t know if it makes sense to open a 3a account for her this year.
Not sure about references, but that was my personal experience for the other standard deduction (the tax software didn’t prorate, but they fixed it when processing).
Careful. As others said, you can only contribute 4/12 of the limit this year, which is about 2.75k… Taxes and social contributions are pro-rated, as are all deductions.
Talking exclusevely about Quellensteuer or normal taxes ?
Big difference is that Quellensteuer applies on the Bruttoeinkommen before social payments, whereas for the regular taxes after social payments, therefore the difference on the tax rates.
Even if it’s not the full amount amount of tax break I wouldn’t be too unhappy since the TER isn’t that awful when compared to similar options and most of my investments are in VT anyway
The ax authorities will consider the amount you paid for 1) the period of residence in Switzerland and 2) for the determination of the annual income and related deduction (tax rate determination).
Example1
Salary from June to December 60 CHFK and 5 CHKF paid in the pillar A
60’000 120’000
-5’000 -5’000
55’000 at the rate of 115’000
Salary from June to December 60 CHFK and 6.8 CHKF paid in the pillar A
60’000 120’000
-6’800 -6’800
53’200 at the rate of 113’200
The above applies for someone filling a tax return in Switzerland or asking for the benefit of the 3A when taxed at source until 31.12.2020.
From 01.01.2021, the law will change for people tax at source. A tax return will be needed to request the 3A deduction (same will apply for repurchase in the pillar 2).
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