One tip can help you save substantially on your taxes.
1. Contributions to 3a retirement savings account
Contributions to a pilar 3a savings account can be deducted fully from your taxable income. Currently the maximum possible contribution is CHF 7’056 for employed and 20% resp. CHF 35’280 for self employed people. *
2. Closing pension gaps
Most people have an extisting pension fund gap. Apart from the mandatory amount which is directly deducted from your income, you might be able to contribute additionally in order to fill in an existing gap and reduce your tax burden substantially.
3. General deductions
Besides the general flat tax deductions you might be entitled to deduct effective costs for property maintenances, education and training, child care, sickness and accident costs, dental expenses, administration of assets etc. Therefore don’t forget to collect all evidence to claim for the deductions.
4. Indirectly amortize mortgages
Owners of a property usually have a mortgage. Usually, the debt must be amortized regularly. In order to keep the tax deductions for the mortage debt and paid interest high, it might be a option of amortizing the mortgage indirectly via deposits into a 3a retiremend savings account.
5. Life insurances
Life insurance income with a saving plan and a surrender value is generally tax free. Since there are various forms of life insurances an early adivce is recommended.
6. Moving to a tax-efficient community
Every community in Switzerland has its own tax rate. The differences are sometimes huge! The most favorable tax base in the canton of Zurich for example is currently 72% and the highest 130%. *
7. For business and self employed
Choose the correct legal form. Deduct your tax burden as a limted company owner and pay out tax privileged dividends.
One advantage of being self-employed is that you can deduct all business-related expenses from your profits. It is important to diligently collect all the invoices and receipts. In addition, depreciation can be made on fixed assets and real estate.
8. Deposit taxes early
In some communities provisional tax invoices paid in advance (until 30.9.) are rewarded with a low rate of interest of currently 1%. On the other hand, tax bills paid after the deadline, are charged with a penalty interest of about 4.5%.*
Do you have a tax question or are you interested in tax advice? I am glad to support you in all tax matters and to handle preparations of your tax return filing.
*as of 2024