Hi - I withdrew a pension pot I had in Switzerland this month and payment was made to my uk bank account.
All went well and tax was withheld at a rate of 2.5% and paid in Schwyz.
I’m now based in the uk and a uk tax payer.
The cover letter from pension company (Swiss) says as follows;
“For payments with a withholding tax deduction a refund is potentially possible.
On the tax office’s web page of the Canton of Schwyz you will find further details and the application to claim the refund of the withholding tax on settlements in cash by pension funds with a registered office in Switzerland.”
I’m confused by above, does it mean I could claim a refund or only if I’m a pension fund with an office in Switzerland?
Based on the information provided, you might be eligible for a refund of the capital tax. The Ct. Schwyz form to be completed and submitted is "Antrag auf Rückerstattung der Quellensteuer auf Leistungen von Vorsorge- einrichtungen".
I thought that you could only claim the withholding tax back if you had been taxed in the destination country. AIUI the U.K. (in Europe - maybe Malta is the same) is pretty unique in not treating the pension pay out as an income event.
So what you are saying is that because the uk don’t charge tax on this lump sum coming into the uk I thus pay the 2.5% tax on it in Switzerland?
This is not reclaimable.
Back in 2016 when I left Switzerland for the uk (returning) I was able to take part of the pension pot out and some of it was frozen until I was 60 I was told.
I remember the money going into my UBS account and I moved money to uk bank account via a FX company I used to use.
I don’t remember any mention of Swiss withholding tax at the time.
- This was when the UK was in the EU still.
The remaining part I have just taken I could have taken prior to being 60 due to uk having left the EU but I was post 60 anyway when I took a few weeks ago.