Hello,

Regading the UK state pension, I think you can't deduct these, but in the same form you use for 3rd pillar there is something called "autres demandes" (other requests), so it might be worth trying.

For the other part of your question however, it's easier for me to answer as making people save taxes on 3rd pillar is my job ;) You just need to send them back this form before the end of march: http://ge.ch/impots/system/files/documents/IS/is_demande_de_rectification_web.pdf

To my knowledge, this form exist only in french but should be fairly easy to fill (there are some indication on how to fill it there, but also in french... http://ge.ch/impots/system/files/documents/IS/is_demande_de_rectification_web_guide.pdf) . However if you need some help you can send me a message here or mail me at [email protected]

One last thing, as many people people don't seem to get the information: Most people talk anly about the 3a when talking about 3rd pillar, there is also the 3b, but unfortunately it's not possible when you're taxed "at the source".

Rémy

Remy,

the answer is exaustive and useful for many, thanks!

However, where I still feel there is not much clarity about (and reason why I'm much more skeptical about the 3rd pillar now) is the fact that when we'll get back the deposit we will be taxed!

Apparently it will not be a tax rate comparable to what you save currently claiming the taxese back, but still a decent negative impact on the amount saved. I did not manage to get clarity on how big this impact is though - any idea?

Thanks for sharing your expertise

Alessandro

Hi,

I just made some quick calculations to give you exemple, for someone who's living in geneva. 1st number is the amount of the life insurance you receive, second one is the tax:

50'000chf: 498 chf of taxes

100'000chf : 3'202 chf

200'000chf: 10'719 chf

500'000 chf: 35'923 chf

So from these numbers, you can see two things. First one, yes you pay tax but not that much (usually 3 to 5%), secondly the higher the amount, the higher the % (like for most taxes). As taxes for 2nd and 3rd pillars are calculated together, it's important to try to not receive both in the same year. That's one of the thing I discuss with my clients when making some planning for retirement. Also keep in mind that you usually don't pay tax on the 3rd pillar B, so if you can deduct it from your taxes, it's often better to do this first.

What I sometimes do is compare the taxes saved, based on the income, versus the taxes paid at the end, and the difference is usually quite huge. Let's say that someone has a taxable income of 100'000 chf, put 6682chf a year in a 3rd pillar for 25years, and gets 200'000chf at the end. He'll save 25x 2'101 chf based on today's rates, and so would be saving 41'806 chf in taxes even after paying the 10K at the end. But you're right that it's something to keep in mind when signing for a 3rd pillar, and unfortunately too often I heard clients tell me that their adviser "forgot" to tell them they have to pay tax at the end.

As always, if you need more specific calculations, feel free to send me a PM or a mail (i'm quicker to answer to mails as i don't log here daily).

Rémy