On November 6, 2024, the Federal Council took a decision on the motion tabled by State Councillor Erich Ettlin and approved the necessary amendments to the Ordinance on Tax-Allowed Deductions, authorizing purchases in the 3rd Pillar A.
This measure will come into force on January 1, 2025. From this date onwards, it will be possible to buy back gaps in 3rd Pillar A contributions over the last 10 years and for periods during which income subject to AHV was received.
These purchases will be capped at the small deduction of CHF 7,258 for 2025, and only for gaps arising from 2025 onwards .
However, on September 20, 2024, the Federal Council decided to adapt certain elements of the preferential taxation of the 2nd and 3rd pillars, based on the recommendations of the expert group tasked with reviewing federal tasks and subsidies.
At the end of January, the Federal Council is likely to present the details of the future tax treatment of 2nd and 3rd Pillar A capital withdrawals as part of the consultation project on the review of tasks and subsidies.
These arrangements also apply to the taxation of capital withdrawals from buy-backs, which taxpayers can now make.
This publication contains general information and is not a substitute for detailed research or expert advice. No liability can be accepted for its content. For specific questions, please contact the author.
