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Swiss Tax Regime for Contributions and Benefits under Pillar 3a (OPP 3)

Pillar 3a allows employees and self-employed individuals to deduct their contributions from their taxable income within certain limits, thus providing tax advantages on income, wealth, and withholding tax. The benefits from this pillar are subject to tax upon payment, with separate taxation at a reduced rate. Early withdrawals are possible under specific conditions, but any non-compliant excess can result in tax penalties.