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tax issues
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Tax issues, now and after retirement

Up to CHF 6'077 */ year (2004) can be deducted from your income when it is put into a special 3a-account.

Depending on your income this can result in a tax reduction of anywhere between CHF 1’100 for small incomes up to CHF 2’400+ for big earners.

If you are a couple and both are contributing to the Social security (AHV) double the amount can be put aside. Thus even further reducing you tax bill.

Any interest earned on theses accounts will not be taxed either.

Only when closing one of these accounts the whole chunk will be taxed at a reduced rate, depending on the community you are living at that time.

To reduce progression during redemption it is advisable to hold several accounts with different banks. Such the tax progression can be kept at a minimum. (Just close one account after the other, with more than one year in between. Check with a local tax counsellor regarding the local treatment of this practise)

3a accounts can be closed either up to 5 years before you reach retirement, when you start your own business, or when you buy a house.

*- maximum contribution: CHF 30’384 if you are self-employed

please note:
This page was last updated February 2004. Also read the disclaimer.