Does True Wealth plan to also use withholding tax-exempt index funds in Pillar 3a?
We are currently examining the use of withholding tax-exempt index funds in Pillar 3a, especially for US equities. The ETF on US equities we use is subject to a withholding tax of 15% on dividends. Withholding tax-neutral index funds are already used for Swiss investments (the fund provider must pay the withholding tax to the federal authorities, but the pillar 3a foundation can reclaim it from the Federal Tax Administration).
Already today, our Pillar 3a solution is more efficient than all Pillar 3a offers known to us in Switzerland, taking into account all costs, interest and tax effects.