Both the Swiss federal government and the cantons levy an annual tax on the advance withdrawal. You must pay the entire tax liability at the time of the advance withdrawal to the tax authority at your place of residence, regardless of the duration of your tax obligation in the canton in question. The advance withdrawal cannot be used to settle this tax liability.

Tax Assessment

The advance withdrawal is taxed separately from your other income. It depends on the tax multiple in the municipality where you live. You should contact the tax office at your place of residence and ask for the relevant calculation. Some tax authorities offer tax calculators with which you can determine the approximate amount of tax.

Tax Rebate

If you have repaid all or part of the advance withdrawal, you will receive an attestation and an updated insurance certificate from the Pension Fund. You can use this repayment attestation to reclaim the taxes paid on the advance withdrawal from the relevant cantonal tax authority. You should submit a request in writing. You have three years from the date when you repay the advance withdrawal to apply for the rebate. After this period, your entitlement to a rebate lapses.

Advance Withdrawal within Three Years Following a Purchase of Pension Benefits

According to the ruling of the Swiss Federal Supreme Court, no lump-sum withdrawals may be made within three years of purchasing pension benefits.

If you fail to satisfy the three-year period, the tax advantage associated with purchasing pension benefits will be revoked retroactively. Therefore, please consult the tax authority about the tax deductibility of purchasing benefits from the Pension Fund followed by and a lump-sum withdrawal shortly thereafter, and request written confirmation of such tax deductibility.