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| I thought UK tax was difficult to calculate - but this is impenetrable!
Can I just clarify, I will be working in Zurich (with my wife) - is the 120k threshhold for tax returns on both of our salary? I see the question has been asked above, but I'm still not sure of the answer!
I'm also slightly perplexed be this quellensteuer question, is this what my "tax at source" will be referred to, or will it be in addition to my tax at source? I will be on a permanent contract, and should get a B permit (as I'm UK national) and my employers have indicated that I will be taxed at source, but exactly how it will work is a mystery.
I've already calculated that my tax (Commune, canton, confederation) for where I will live (Oerlikon) will be around 14.6%, which seems on the higher of what people have indicated. Then I'll have 5% AVG, 1-2% insurances and....what else?
My employers have told me that the pension scheme they run is non-contributory, so I don't have to put anything in, and to be honest as I'm only 25 for the time being that suits me. But will I have to then pay some kind of extra state pension on top of the AVG?
To sum up those queries:
1. Is the tax return threshhold 120k for both people - or can you be treat separately on this?
2. Is "quellensteuer" the term used to describe the income tax at source - or an additional tax on foreigners like me?
3. Does my 14.6% tax sound reasonable? I'm presuming no other tax will be due?
4. Do my other deductions sound right - and are there any other big deductions (e.g. 5%+) that I have omitted?
Oh, and I concur with other people on the forum, by no means am I under the illusion that Switzerland is a low tax country! | |
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1. As far as I am aware the threshhold is 120K household income.
2. Quellensteuer is PAYE, so yes.
3. Can't say without knowing your salary but if you are in Zürich, married with no children then this would equate to an annual salary of ca 200K for year 2007/2008. If you are single then ca 150K and if you are both earning 160K.
4. You will have deductions of at least 6.1% for social contributions on the first 126K and at least 5.1% thereafter.