thanks guys...

Well I received the permit when I got married in February 2003, although the date of entry for the permit was september 2002 (when I first arrived in Schweiz)... so thus from september I will qualify for citizenship - non?

So it seems it will transfer to a permit C then... although tax wise it will remain the same (I already pay the same as a Swiss).

However my understanding is that rather than give out a permit C, then they would rather see full integration by granting Swiss nationality to a person rather than giving out permits...