As a rule, Pension Fund buy-ins can be deducted from taxable income, but this ultimately depends on the decision of the tax authorities. Following a buy-in, no lump-sum withdrawals may be made during a period of three years. If you fail to respect this required period, the tax authorities may retroactively deny the tax deductibility of your buy-ins. The buy-in amount contributed in the last three years may not be paid out as a lump sum.
Lump-sum payments include:
- early withdrawals for the purchase of residential property
- voluntary lump-sum payments on retirement as well as statutory lump-sum payments
- cash payments after taking up self-employment or after emigration
This does not affect:
- lump-sum payments in the event of disability or death