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Private pension provision is becoming more and more important, especially Pillar 3. It's easy to save taxes in Pillar 3a: Pay in the maximum amount to Pillar 3a by December 31 and secure tax benefits of up to CHF 2,000.

Employed persons can make voluntary contributions into their private pension provision – Pillar 3a – and at the same time reduce their tax bill considerably. Last year, an employee earning CHF 80,000 achieved tax savings averaging CHF 1,462. Self-employed persons without a pension fund can even save about 10 times as much.


Pay in once and benefit twice

If you start paying in the maximum statutory amount regularly - year for year - from the age of 35, you can save around CHF 40,000 in taxes by the time you reach retirement. For the self-employed, it can be CHF 300,000 or more. 

And, for every franc you pay in, you benefit again in old age when it is repaid but only taxed at a moderate special tax rate. In times when questions are being asked about the future of our Swiss old-age provision, there is no disputing that Pillar 3a makes good sense.


Tax deduction limits for 3a

Tax deduction limits for payments into Pillar 3a by 31.12 at the latest:

  • Employees: CHF 6,826
  • Self-employed without pension fund: CHF 34,128

10 tips for saving on taxes

  1. Fully utilizing the 3a limit is the simplest way to make big savings. A Pillar 3a account can be opened at a bank or insurance company. Both offer flexibility and returns. At AXA, Pillar 3a can also be combined with insurance . This allows you to minimize the risk for yourself and your family.
  2. Purchases in the pension fund: Voluntary purchases in the pension fund are also tax-deductible and are possible if you have a gap in pension coverage. Check your pension fund certificate to see if there is a gap.
  3. Journey to work & meals: Whether public transportation, bike or car – account for your travel costs between home and work. And if you have to eat or sleep away from home, you can make deductions, generally in the form of flat-rate amounts.
  4. Continuing education & professional expenses: Training courses, specialist literature, clothing, equipment and other job-related expenditure is tax-deductible as a flat-rate amount in many cantons without the need for proof.
  5. Home office: If you regularly use a private room at home for work purposes, you can deduct some of your housing costs from your tax bill.
  6. Paying taxes in advance: Some cantons offer a better interest rate than any savings account if you pay your taxes in advance. However, pay too late and you will incur an interest penalty of up to 6%.
  7. Debts: Debit interest on personal loans, credit cards and mortgages is tax-deductible. Leasing costs cannot be deducted if you earn a salary.
  8. Medical expenses: Expensive healthcare costs – for dentistry, for example – are tax-deductible. The threshold is at about 5% of net income depending on the canton.
  9. Donations: Enclose the receipts with your tax return.
  10. Tax advice: Ask a tax professional and you'll benefit. Free pension advice also offers valuable tips for optimizing your tax situation. 

Always there for you

Do you have any questions, or would you like a pension consultation? We are always there for you!

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