Just one week to get your tax planning sorted out. What are you planning to do?
Easy answers could be topping up your company pension (in certain circumstances) or paying in to your third pillar private pension to maximise your tax savings this year. Clearly there are more things you can do than this, but if transferring money is part of your plans, assume you only have one week to do it in from now… and the clock’s ticking!
If you were planning to pay into your Company Pension scheme, you’d better ask your employer’s pension department for the deadline they can practically accept your payment and have it credited for the 2009 tax year. Theoretically, the date should be 31st December as this is the legal date, but with Christmas close downs, staff holidays, illness and other factors to consider pension schemes often recommend “last payment dates” that are earlier than the legally set deadline. For some companies, this deadline has already passed.
If you can’t pay into your Employer’s scheme, remember that you can also pay in up to a total of Fr. 6,566 in 2009 into your 3rd pillar (Dritte Saule) private pension. If you have an annual contractualised contribution set up with an insurance company 3rd pillar, rather than increasing this each year why not pay the surplus between your contractual amount and this years maximum into a Bank account Dritte Saule Konto?
Bank account 3rd pillars have no charges, so while you get the same tax benefit you save paying the hefty insurance company charges for top ups. With an interest rate of 2%, Postfinance and Bank WIR are currently the best options for opening a new 3rd pillar account. We recommend you do this before 20th December as afterwards it might be too late to count for the 2009 tax year
If you have any outstanding bills, pay these before the year end so as to reduce the size of your bank account and thereby potentially reduce the amount of Vermoegensteuer (Wealth, or Asset Tax) that you have to pay.