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| Ok, that is heaps and heaps of info. After reading it, I am not sure that my 31% is correct.
What my contract says (which I still have to sign) is this:
1-
Starting salary (all rounded off):
86000
2- magically reduced to 76000, no idea why
3- this 76000 is then multiplied by all the different % of insurances
(5.05% AVG, 1% ALV, 0.51 Unfall, 10.4% Bernische Pensionkasse, and then 1.2% Verwaltung on 1 months part of 76000),
Together these are the employer contributions I have to pay. Then I presume this 76000 becomes my taxable income?
4- Because then they take out this. based on the 76000
5.05% AVG, 1% ALV, 0.38% unfall and 8.4% Bernische PK
These are my employee contributions I guess.
Then they take out 9.9 % quellensteuer on the 76000.
So I have no idea whether I phrased it correctly, as the actual quellensteuer is only 9.9 %, but in total the contributions, including quellensteuer, amount to 31% if you add it all up (excluding health).
And they pay the net result income out in 13 months equal shares.
But I am confused about what you said about receiving a bill. If the tax as maybe in my case has already been taken out on the 13th month, why would I receive a bill if I leave? are you saying most people get the 13th month parts in June and December ahead of time? So it has nothing to do with how the tax on the 13th month is calculated, is that right?
Also, if you would still think this all adds up to too much, it would seem it is due to the fact I pay employer contributions right? Or would it seem something else has gone wrong as well?
Either way, I know there may be nothing I can do about it. I do not mind paying tax either, but I am disappointed that I have to pay all these pension contributions (employer+employee) because I do not think I can ever take a pension home. (I will be here until after 2007 and being an EU citizen then would mean the Swiss maintain the right of keeping all my contributions; and since I move country every few years, I have this huge AVG and PK hole opening up chasms behind me).
If I go down the route of claiming tax back, I heard you then have to do it every year, even if you have a B and <120k. Is this true?
Anyhow, I really appreciate all the help from you guys. | |
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So lets have a look at what you are saying...
Firstly I guess that the difference between the 86000 and 76000 is a clever little trick they sometimes pull so that you have paid holidays! If you do not take the holidays you get the money. Check this out.
Looking at what you are saying you are paying 5.05 AHV employer and 5.05 AHV employee - so you are self employed. No problem with this.
The 76000 will then not be your taxable income but instead 63000. The employer contributions are not subject to tax and must be net deducted.
With respect to the 13 month dealing. If you are paid a lump sum every 6 months this must have a starting point. Often companies will say okay you are "penalised" by not getting the full first 13th month part but we will pay you the full 13th month for the second one as you will have then been with us for the full 6 months. Point being if you leave immediately after that payment your averaged salary is higher than your annual would be hence the tendency to pay the second 13th month in November of December to remove this possibility. Furthermore some companies say bollocks this is too much effort we will pay the 13th month irrespective of when you join. Then you get more pay in the first year as this is not pro rated. This means paying more tax...
As for the pensions contributions this is not a problem you can have it paid out or transferred the money is not lost. That is true for the AHV and for the PK. If you transfer it I think it is tax free and if it is paid out it is taxed at 7%. Note here that after 2007 or whenever it is that they change the pension transfer law you can only have it paid out if you leave the EU.
Once you start trying to claim back tax you are burdened with it for the duration of your time in CH. Note here that I would, in your case, not suggest it as the win will probably be minimal and the effort not insignificant. The only reason to do it would be if you organize yourself a flat somewhere inconvenient where it is much quicker to drive than take the train, bus, tram and preferably 30Km each way. With this and the other things you can deduct I think you can probably get down to almost no tax at all...
That said on your salary I guess they are helping with accomodation...