Deduction entitlement from Pillar 3a – the day is decisive

A married couple transferred an amount to their insurance company for a contribution to their Pillar 3a on 29 December 2017 and deducted the amount on their tax return for municipal and cantonal taxes.

The tax office refused the deduction on the grounds that the day of the credit is relevant, not the day of the debit to the taxpayer. In court, the tax office was proven right: the credit to the collective account of an insurance company is not sufficient for the timeliness before the turn of the year. The decisive factor is the crediting of the taxpayer’s individual pension account.

Conclusion: Transfer your 3a contribution in good time, by mid-December at the latest.