New in Switzerland (Pillar 3A and Taxes)

Hello Mustachians,

I hope you’re doing well. I’m new to Switzerland, read a lot in this forum and now I’d like to start my investment adventure but still have a question about taxes and the 3A Pillar since it is something I’m considering in my portfolio.

I started my job position in September 2023 with a Permit B. My brutto salary was 120 000 CHF. This year I got a small increase (1%) and a bonus (from last year), meaning my salary is higher than 120 000 CHF and I should declare my taxes. For the moment, I’m still under the withholding taxes system and nobody contacted me in this regard.

I have the following questions I couldn’t find in other posts or even on the internet:

  • From your experience, when will the Tax Dept contact me to change from the withholding tax procedure to the ‘normal’ one? Do I need to do something? Contact someone?

  • If I buy the max amount for the 3A pillar this calendar year (2024) but I’m still under the withholding tax process, can I ask for tax reimbursement at some point? (because my salary during 2024 will be higher than 120 000 CHF brutto and I have a Permit B).

Thanks for your help and have a nice day :slight_smile:

Not sure. It’s worth contacting them anyway, they can answer your questions better.

It could be that if you pay into 3rd pillar, you will have a right (:tada::tada::tada:) to be subjected to the normal tax calculation procedure anyway.

P.S. you will pay taxes at source as long as you are on B (or what else) permit. The difference with high salary situation is only if your tax obligation ends there or you have to file a tax declaration for the whole year in addition.

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You’ll be staying with the at source process for a while (until you get permanent residency, or marry someone who is not taxed at source).

The difference with higher salary (or passing the wealth or other income threshold) is that you now have to file your taxes.

If the obligation to file comes from salary it might be possible to wait until they sent you the form (but might be preferable/easier to ask for it at the beginning of next year instead if waiting).

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Thanks for the answer Dr. PI! I have also found this in internet:

I understand from this document that it is possible to do the retroactive tax assessment for all years where you’re under the withholding tax system. In this case, if I invest in Pillar 3A, it should be possible to get the taxes back.

Link to the document: LINK

Thanks for the answer! You mean that I’ll be still paying at the source but since I’ll fill the declaration my tax rate will be modified? And then at the end of the year I will automatically receive the 3A tax decrease amount?

Instead of being taxed approximately, since you file you’ll have your exact tax liability computed.

Depending on where you live it can take a few years to receive your tax assessment, when you receive it the difference will be settled (either reimbursed or you can also owe money).

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I came in 2021 with a B permit and sub 120k salary taxed at source. I did set up a third pillar fairly fast and contacted the tax agency myself to make a declaration to benefit from the tax credits - you can go to them yourself. I feel if you have a third pillar it makes no sense to not do a tax declaration, regardless of the salary, but could be wrong too.

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