Swiss pension fund
January 30, 2012 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear Sir or Madam,
I would like to use my Swiss pension fund to purchase owner-occupied property. The withdrawal amount is currently around 123,000.00 CHF. Considering all deductions in Switzerland and Germany, how much will be available to me as equity in Euro?
Here are some details from my tax assessment for 2010 received a few days ago:
- Income/taxable income: 43,597.00 Euro
- Determined income tax: 10,335.00 Euro
- Pension fund withdrawal: 1,992
- single/unmarried
Thank you for your response.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your use in an initial consultation as follows:
According to a decision by the Federal Fiscal Court (BFH) dated 25.03.2010 (X B 142/09), the lump-sum payment from the Swiss pension fund constitutes other income within the meaning of § 22 EStG, which is subject to German taxation with the post-tax share of the German income tax through the tax share of income tax.
In the case of a payout in 2012, 64% of the payout amount minus the advertising costs or the advertising cost lump sum of €102 (if there are no advertising costs exceeding the lump sum) are subject to income tax. In your case, you would have to pay taxes on 64% of the payout, after deducting the advertising costs or the lump sum of €102. The income tax burden is then expected to be around 40% of the resulting amount.
Under certain circumstances, according to the BFH decision, the lump sum settlement under § 3 no. 3 EStG may be tax-free if the lump sum payment is made to settle a pension or retirement claim.
You should have the situation checked in detail for tax purposes BEFORE the payout. If you are interested, you can contact me at my email address StillerStB@gmx.de.
Best regards,
Ulrich Stiller
Tax consultant/Diplom Business Economist
