Switzerland: Reduced tax on withdrawals of pension capital (Zurich)
Zurich reduced the rates of tax on withdrawals of pension capital
Zurich reduced the rates of tax on withdrawals of pension capital
The governing council of the Canton of Zurich reduced the rates of tax on withdrawals of pension capital.
Effective 1 January 2022, lower tax rates will be applied by the canton for a pension capital withdrawal (e.g., a withdrawal from occupational pension plans or from private pension schemes). However, the tax will depend on the taxpayer’s personal situation (single / married, religious affiliation, etc.) as well as the place of residency.
Beginning 1 January 2022, the tax rates in the Canton of Zurich for a pension capital withdrawal between CHF 125,000 and CHF 1 million will be reduced:
- For a single taxpayer—between 5.2% and 11.5% (reduced from 16.1%)
- For married taxpayers with no religious affiliation—between 4.9% and 8.5% (reduced from 13%)
KPMG observation
Given that the taxable event for pension capital withdrawal is the cashflow at withdrawal, taxpayers may decide to wait until 1 January 2022 to benefit from the adjustment to the Zurich tax law.
Read a December 2021 report prepared by the KPMG member firm in Switzerland
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