Closing contribution gaps in the 3rd pillar a)
In addition to the pension fund (2nd pillar), private pension provision (3rd pillar a) is an important pillar of our pension system.
Like additional pension fund purchases, contributions to the 3rd pillar a) can also be deducted from taxable income. Previously, the maximum amount could only be paid in and taken into account for the corresponding tax year.
For 2026, the maximum amount is:
- Employees: CHF 7,258
- Self-employed persons: 20 % of earned income, max. CHF 36,288
A new rule will come into effect from the 2026 tax year.
Provided that a person is not already receiving retirement benefits from pillar 3a), the maximum amount for pillar 3a) can also be paid retroactively for up to 10 years in the future. However, this is only possible up to and including the 2025 tax year. This can be an attractive option for tax optimization.
Planning to move? Watch out for the deadline!
Are you planning to move? Be careful! From a tax perspective, it is important to consider carefully where you want to move to and, based on that, when you want to move. This is because the municipality (or canton) where you are registered as a resident on December 31 is entitled to collect tax for the entire year.
The first step is therefore to determine the tax rate in your current municipality (and canton). If this is lower than the future tax rate, it is advisable to wait until January 1 of the following year to change your place of residence. However, if the tax rate is higher than at the future place of residence, from a tax perspective it is advisable to plan and carry out the move as soon as possible, but definitely before the end of the year.
Here is a small example: Peter Müller wants to move from the canton of Zurich to the canton of St. Gallen because he has bought a condominium there. The tax rate in his municipality of residence in the canton of Zurich is 106 % (canton 95 %).
The tax rate in his new municipality in the canton of St. Gallen is 120 % (canton 105 %). This results in the following tax burden:
- Canton of Zurich: CHF 14,3001
- Canton of St. Gallen: CHF 19,600
This results in a tax saving of CHF 5,300 for one year. Mr. Müller will therefore not move until January 1 in order to benefit from the lower tax burden for another year.
International weekly resident / withholding tax correction until 31 March
An international weekly resident (not a genuine cross-border commuter who commutes every day) is someone who maintains their residence abroad but is employed by a Swiss employer in Switzerland and works for them in Switzerland.
As a rule, tax residency remains abroad and there is only limited tax liability in Switzerland. Consequently, the withholding tax deducted from the salary is generally the definitive Swiss tax burden.
However, if you did not work in Switzerland on all days, or if the wrong withholding tax rate was applied, or if less than 90 % of your family income was earned in Switzerland, you can submit a withholding tax correction request. The request for correction must be submitted by March 31 of the following year at the latest. This deadline cannot be extended.
With regard to working days in particular, it is important to understand that non-Swiss working days (e.g., business trip days abroad) are subject to taxation in the country of residence. To avoid double taxation, it is necessary to submit a withholding tax correction request.
Therefore, make sure that your international weekly residents are aware of this.
Footnote
1 These tax amounts are calculated on the basis of CHF 100,000 taxable income and CHF 1,000,000 assets.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
