The Swiss pension system is based on three pillars. The third pillar comprises private pension provision. It is divided into Pillar 3a and Pillar 3b. Payments into pillar 3a can be deducted from taxable income in your tax return. These products can only be offered by 3a foundations recognized by the Swiss Confederation.
Everything that you would otherwise set aside for old age, for example in the form of a savings account or by investing in securities, is known as Pillar 3b. Pillar 3b refers to private savings that, unlike pillar 3a, are not tax-deductible.
Declaration in the tax return
You must declare balances on accounts, securities, and repurchase values of pillar 3b insurance policies in the list of assets in your tax return. The value of Pillar 3b assets are counted as taxable assets and income from them as taxable income (except for capital gains, which are tax-exempt in both pension plans and private assets).