The consultation on amending the ordinance (BVV 3) on the tax deductibility of contributions to recognized forms of pension provision, better known as Pillar 3a, ended on 6 March 2024. It is currently known that a maximum of CHF 7’056 (for employed persons) or CHF 35’280 (for self-employed persons without a 2nd pillar) can be deducted from tax each year. The decisive factor here is that the payment can only be claimed for tax purposes in the year in which the payment was actually made.
Under the new rules making payments for previous years would be possible, provided that the maximum amount was not paid in. This is particularly important for younger employees with lower incomes. This retrospective purchase should be possible retroactively for the last 10 years.
However, it must be noted that the maximum contribution must be paid in the year of the retrospective purchase for the current year and that a retrospective purchase can only be made once for each (previous) year with a contribution gap (i.e. no “installment payment”). However, purchases for several previous years can be made in one lump sum.
It is the taxpayer’s responsibility to submit a corresponding application for a retrospective payment to their 3rd pillar provider. They must state the amount of the purchase, for which years with a contribution gap the purchase is to be made and the amount of the corresponding year. If the political process proceeds without major delays, the amended ordinance could come into force on January 1, 2025.
