Important change for cross-border commuters between Switzerland and Liechtenstein from 2027!
The Federal Tax Administration (FTA) has reviewed the previous practice whereby the Cantonal Tax Office of St. Gallen allowed contributions to pillar 3a to be deducted for tax purposes for cross-border commuters between Switzerland and Liechtenstein.
Clarification from the FTA:
Contributions to pillar 3a are only permitted if there is an AHV/IV obligation in Switzerland.
However, CH-FL cross-border commuters are subject to the 1st pillar in Liechtenstein – and are therefore not entitled to make tax-privileged payments into pillar 3a.
Transitional arrangement:
CH-FL cross-border commuters can still deduct their payments until the 2026 tax period.
➡️ From 2027, this option will no longer be available.
Conclusion:
Only those who are subject to Swiss AHV/IV can continue to make tax-privileged contributions to pillar 3a.
This change must be taken into account in the pension and tax planning of cross-border commuters.
Do you have any questions about pillar 3a? Mr. Daniel Wille will be happy to provide you with information.
