Can I Claim Pension Contributions — Pillar 2 & 3a (BVG / Pensionskasse) as a Business Expense in Switzerland?
Employer contributions to an employee's Pensionskasse (Pillar 2, BVG) are fully deductible for the company and tax-free for the employee. Owner-directors without Pensionskasse can deduct up to CHF 35,280 per year in personal Pillar 3a contributions (personal deduction). Company contributions to a registered occupational pension are a primary tax-efficiency tool.
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What Federal Tax Administration (ESTV/FTA) says
Employer Pensionskasse contributions are deductible business expenses under Art. 27 DBG and cantonal equivalents. BVG contributions are set by the pension plan rules (always at least 50% employer-paid). Voluntary buy-ins (Einkauf) into the Pensionskasse are also deductible for the employee personally. Pillar 3a contributions are a personal deduction: CHF 7,056 for employees with a Pensionskasse, CHF 35,280 for self-employed or those without BVG coverage.
When you can claim
- Mandatory employer BVG contributions for all employees earning above CHF 22,050 annually
- Voluntary enhanced employer contributions above BVG minimum (fully deductible for company)
- Pensionskasse buy-ins by the owner-director to fill contribution gaps from prior low-income years
- Pillar 3a annual deposits by the owner-director (personal income tax deduction)
- Setting up a 1e (extra-mandatory) pension plan for senior employees or directors with salary above CHF 132,300
When you cannot claim
- Pension contributions for persons not employed by the company
- Contributions to foreign pension schemes that are not recognised by Swiss tax authorities
- Excessive pension contributions that exceed the permitted maximums in the Pensionskasse plan rules
Good to know
Pro tip: For owner-directors who want to accelerate retirement savings and reduce taxable income, a Pensionskasse buy-in (Einkauf) can be extremely effective. If you joined a Pensionskasse late or had gaps, you may have a permitted buy-in amount of CHF 100,000+ that is immediately deductible from personal taxable income. Get a current certificate of maximum permitted purchase from your Pensionskasse.
Related expenses
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