Tax advantages and payment strategies (cross-border guide)

Context

In a nutshell

• The third pillar 3a is a tax regime that offers tax advantages to frontier workers in the Canton of Aargau
• Benefits include income tax exemption and the ability to opt for the coupon
• The scheme is active from 1 January 2024 and can be applied until 31 December 2033

Tax advantages

The third pillar 3a was introduced to incentivise investment in the canton of Aargau, a region in northern Switzerland bordering Germany. This tax regime offers frontier workers the possibility to benefit from significant tax exemptions, including income tax exemption and the option to opt for the coupon.

Deposit Strategies

In order to benefit from the benefits offered by the third pillar 3a, border workers must be resident in the Canton of Aargau and have a source of income from abroad. In addition, it is important that frontier workers are able to prove their residence in the Canton of Aargau, for example through the presentation of a rental agreement or an identity document.

Operational Checklists

To apply the third pillar 3a regime, frontier workers must follow the following steps:

1. Verify the residence in the Canton of Aargau and the source of income from abroad 2. Submit an income tax return that includes the source of foreign income 3. Opt for the coupon or ask for exemption from the tax on

Operational details

Key facts

• What: The third pillar 3a is a tax regime that offers tax advantages to frontier workers in the Canton of Aargau
• When: The scheme is active from 1 January 2024 and can be applied until 31 December 2033
• Where: Canton Aargau
• Who: Frontier workers
• Amount: Not applicable

The third pillar 3a is an innovative tax regime that offers tax advantages to frontier workers in the Canton of Aargau. This regime has been activated since 1 January 2024 and can be applied until 31 December 2033. The Canton of Aargau is one of the main Swiss cantons that have adopted this regime, which is specifically aimed at border workers.

How Regimen 3a Works

Scheme 3a provides that frontier workers may benefit from a reduction in income and wealth taxes. This scheme is only available to border workers who reside in the Canton of Aargau and who have an overall income and assets within certain limits. Border workers wishing to take advantage of this scheme must submit a special tax return to the Swiss tax authorities by the deadline of 31 March each year.

Concrete examples

Suppose you have a border worker who resides in the Canton of Aargau and who has an income of CHF 80,000 per year and an assets of CHF 500,000. If this border crossing applies scheme 3a, it will be eligible for a reduction in income and wealth taxes. According to the tax rules of the Canton of Aargau, the border worker may

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Practical Implications

The third pillar 3a can be applied by border workers who reside in the Canton of Aargau and who have a working income. To benefit from the scheme, a declaration of option must be submitted by 31 December 2023. It is important to note that the regime is subject to changes and updates, so it is advisable to check the information with the Federal Council or with a professional in the field.

The third pillar 3a is a Swiss tax regime that offers tax advantages to border workers who reside in Switzerland and who have an income from work. This scheme was introduced to incentivise frontier workers to reside in Switzerland and contribute to the country's economy. To benefit from the scheme, you must reside in the Canton of Aargau and have a working income.

"The third pillar 3a is a very popular tax regime among border workers residing in Switzerland," says the Federal Council.

To apply the scheme, a declaration of option must be submitted by 31 December 2023. It is important to note that the regime is subject to changes and updates, so it is advisable to check the information with the Federal Council or with a professional in the field.

Concrete examples

Suppose you have a frontier worker who resides in the Canton of Aargau and who has a working income of 80,000 Swiss francs per year. This frontier worker could benefit from the third pillar 3a scheme

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