The tax issue is central in a 3th Pillar A. The amount paid into pillar 3A is deductible from your taxable income. This involves significant tax savings that will depend on your income level. Indeed, the higher your income, the greater the tax savings will be.
Although a capital tax is due at the end of your 3rd pillar 3A, it is much lower than the savings made from year to year on income tax. Other important points, the income from the 3th Pillar A are not taxable, as is accumulated capital that is not part of your wealth and therefore escapes wealth tax.
Note that the amount at which you can pay a 3rd pillar pillar 3A depends first of all on your status as an employee or self-employed person.
What deduction on the 3th Pillar A for employees?
The definition that differentiates an employee from a self-employed person for the deduction of a 3th Pillar A depends on whether they are members of a pension fund or not. If he is affiliated to a pension fund, the taxpayer is considered to be an employee and therefore benefits from a maximum deduction of CHF 7'258.- on his taxable income per year.
Note that this maximum deduction is reviewed every 2 to 3 years and leads to an increase in the maximum deductible by around CHF 60.- at each adjustment. In reality, this amount is only a fraction of the maximum AHV pension. This is 24% of 30,240.- of the maximum AHV pension. This means that this amount is subject to change as soon as the maximum AHV pension changes.
Employees who are not affiliated to a pension fund are entitled to a deduction of 20% of their income (for example: employees who have not reached the minimum income threshold of CHF 22,680 to join the pension fund).
Couples can each deduct CHF 7'258.- if they are affiliated to a pension fund.
What deduction on the 3th Pillar A for the self-employed?
The maximum amount that can be deducted for the self-employed is much higher. This is because the self-employed are not affiliated to a pension fund and must therefore make up for the lack of contributions or coverage.
The maximum amount deductible for a 3rd pillar 3A for the self-employed is currently CHF 36,288.- This is 120% of the maximum AHV pension.
However, the self-employed are subject to another limit. The maximum allowable deduction corresponds to 20% of their net profit. You therefore need a net profit of CHF 181,440.- to benefit from the full deduction.
What deduction on the 3th Pillar A for the AnoBags?
Special status between the employee and the self-employed. This status is that of employees of foreign companies who do not themselves contribute to social insurance in Switzerland and who delegate their employee to do so in exchange for an amount in return.
The rules concerning this status have changed a lot and few partners offer solutions. Currently, they are considered employees without employers (in Switzerland) and must contribute to a pension fund and therefore benefit from a maximum deduction of CHF 7'258.- per year.
Conclusion
The amount at which you can pay a 3rd pillar pillar 3A so depends on your status. However, the most common status is that of employee. The deduction of CHF 7,258 is the most frequent and generates up to CHF 3,000 in tax savings depending on your income.
Since the tax return of this deduction is guaranteed and high, you must take full advantage of these solutions.
