Skip to content
Get in touch

Glossary

Capital Withdrawal Tax

Capital Withdrawal Tax is a special tax on capital payments from pension provision, for example when drawing on Pension Fund or Pillar 3a savings. It is levied separately from other income and at a reduced pension tariff. The rate and its progressive effect vary considerably between cantons.

At a glance

01

Capital payments from pension provision are taxed separately from other income and at a reduced rate (DBG Art. 38).

02

The Confederation, cantons and municipalities each levy the tax; cantonal tariffs vary considerably.

03

Staggering withdrawals across several tax years can reduce the overall progressive tax burden.

Frequently asked questions

The amount depends on the sum drawn and the canton of residence, as cantons and municipalities apply their own tariffs. The pension tariff is lower than ordinary income tax. Spreading withdrawals from several pension vehicles across different years can reduce the total tax burden.

Part of the topic

Vorsorge & Pensionierung

Sources: Eidg. Steuerverwaltung (ESTV) · Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)