Go Back   English Forum Switzerland > Help & tips > Employment
Reply
 
Thread Tools Display Modes
  #21  
Old 05.01.2015, 22:49
Forum Veteran
 
Join Date: Aug 2011
Location: Rotkreuz ZG
Posts: 504
Groaned at 2 Times in 2 Posts
Thanked 563 Times in 268 Posts
heckenhocker has an excellent reputationheckenhocker has an excellent reputationheckenhocker has an excellent reputationheckenhocker has an excellent reputation
Re: Taxation of school fees - Legal question

Quote:
View Post
Thanks to all for the helpful responses.
As I am a tax declarer since 2009, I am familiar with filling out the return. This is how I manage to spot the impact already.

My issue at the moment is the pending tax bill, (& not so much the interest), coupled with lifestyle change needed to absorb the 20 000chf - 30 000 chf annual impact.

The most frustrating thing is that this all should have been made transparent to me years ago and I could have done some effective tax planning for 2014 (eg: pension missing years; house renovations etc....), or chosen to put kids into local schools before they started IGSCE/IB programs.
It's not your employer's obligation to explain the tax system to you, or "make it transparent" to you - whether that's in Switzerland or elsewhere. In Switzerland I'd say an employer's obligation is even less realistic than in other countries, as the taxation in Switzerland depends so much on where the employee lives, his/her personal situation (spouse, kids, mortgage etc).

It sounds like the employer is willing to continue its contractual obligation to pay the school fees - the tax impact is a personal issue for you.

THere are federal regulations allowing certain costs (such as schooling) to be tax-deductible or not-taxable for expats for maximum 5 years. Kantons have implemented the regulations differently, and you'd need to ask Vaud tax authority for their regulation. However sometimes the concession is allowed for "foreigners on local contracts" as long as the individual was recruited from outside Switzerland (i.e. not already in the Swiss labour pool). This is either at kanton level, or by agreement between the employer and the kanton tax authority. My employer has such an agreement in place.

see appendix D of this document
http://www.pwc.com/us/en/hr-internat...folio-2013.pdf
Reply With Quote
The following 4 users would like to thank heckenhocker for this useful post:
  #22  
Old 05.01.2015, 23:17
Wallabies's Avatar
Forum Legend
 
Join Date: Sep 2011
Location: Winterthur
Posts: 3,199
Groaned at 317 Times in 182 Posts
Thanked 3,292 Times in 1,564 Posts
Wallabies has a reputation beyond reputeWallabies has a reputation beyond reputeWallabies has a reputation beyond reputeWallabies has a reputation beyond repute
Re: Taxation of school fees - Legal question

You have had 5 years of extremely high benefits that most people never see, consider yourself lucky!
Reply With Quote
The following 5 users would like to thank Wallabies for this useful post:
  #23  
Old 05.01.2015, 23:57
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 6,522
Groaned at 43 Times in 39 Posts
Thanked 9,156 Times in 4,356 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: Taxation of school fees - Legal question

Quote:
View Post
It's not your employer's obligation to explain the tax system to you, or "make it transparent" to you - whether that's in Switzerland or elsewhere...
Not fun to hear, but a fair point. OP, have you reviewed your original contract section where it talks about the benefit? Maybe there's a bit in small print that says there could be tax implications or when the benefits end, etc.? Maybe even a statutory reference? Doesn't hurt to look, as it might give you more information to work with - you don't want to go into your office making accusations without reading the contract first.
Reply With Quote
This user would like to thank 3Wishes for this useful post:
  #24  
Old 06.01.2015, 00:07
Forum Legend
 
Join Date: Jun 2007
Location: What's it to you?
Posts: 2,632
Groaned at 98 Times in 68 Posts
Thanked 3,209 Times in 1,296 Posts
Snoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond repute
Re: Taxation of school fees - Legal question

Quote:
View Post
It's not your employer's obligation to explain the tax system to you, or "make it transparent" to you - whether that's in Switzerland or elsewhere.
You are of course correct, however a good employer would make sure that an expat employee is made aware of some of the bigger surprises that may await them. When I went to Japan our HR department told me clearly that on my first year I would pay no income tax (it's paid in arrears), but that I would be paying an extra heavy tax bill when I leave and I should put the money aside. It was useful information to have. Had I not been told, it could have potentially been embarrassing.
Reply With Quote
The following 2 users would like to thank Snoopy for this useful post:
  #25  
Old 26.01.2015, 12:31
Newbie
 
Join Date: Nov 2014
Location: Zurich
Posts: 8
Groaned at 2 Times in 2 Posts
Thanked 1 Time in 1 Post
sambhare has no particular reputation at present
Re: Taxation of school fees - Legal question

I will try to brief my question related to school fees and legality.

I came Switzerland in Nov 2014. When I signed contract for getting Swiss work permit my company was paying 75% of school fees.
Suddenly company changed policy and now company is not paying anything for employee`s children school fees.
One of my friend told me that it is mandatody for orgizations to support for school fees in Switzerland. But he was not 100% sure about this.
Please let me know if there is any law which mandates company to support for emplyees school fee.

Thanks in advance.
Reply With Quote
  #26  
Old 26.01.2015, 12:33
roegner's Avatar
Forum Legend
 
Join Date: May 2011
Location: Zurich
Posts: 3,036
Groaned at 87 Times in 65 Posts
Thanked 3,060 Times in 1,567 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Taxation of school fees - Legal question

It is not mandatory to help with school fees. And as per another post you are not paying any social security here I would rather think you cannot expect any support from that.
Reply With Quote
The following 2 users would like to thank roegner for this useful post:
  #27  
Old 26.01.2015, 12:56
Newbie
 
Join Date: Nov 2014
Location: Zurich
Posts: 8
Groaned at 2 Times in 2 Posts
Thanked 1 Time in 1 Post
sambhare has no particular reputation at present
Re: Taxation of school fees - Legal question

Thanks roegner for quick reply.
I am not paying social security here because it is mandated by my company to sign COC. We have been told that there is some agree between India and Switzerland based on which it is mandatory to sign COC and pay social security (provident fund) in India and no need to pay in Switzerland. Similar agreement is also in place between India and Germany.
Reply With Quote
This user groans at sambhare for this post:
  #28  
Old 26.01.2015, 13:52
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 8,402
Groaned at 141 Times in 122 Posts
Thanked 14,590 Times in 6,208 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: Taxation of school fees - Legal question

Quote:
View Post
One of my friend told me that it is mandatody for orgizations to support for school fees in Switzerland. But he was not 100% sure about this.
What made him think that?

This seems to me a totally random thing to claim.

Think about it.

If this was the case, wouldn't everybody's kids be in private schooling?
Reply With Quote
This user would like to thank amogles for this useful post:
  #29  
Old 26.01.2015, 13:54
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 18,084
Groaned at 924 Times in 720 Posts
Thanked 19,616 Times in 9,438 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Taxation of school fees - Legal question

The obvious thing to do is to send them to public school, then there will be no school fees.

Tom
Reply With Quote
The following 2 users would like to thank st2lemans for this useful post:
  #30  
Old 26.01.2015, 13:56
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 8,402
Groaned at 141 Times in 122 Posts
Thanked 14,590 Times in 6,208 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: Taxation of school fees - Legal question

Quote:
View Post
The obvious thing to do is to send them to public school, then there will be no school fees.

Tom

- plus kids get integrated and pick up local language and culture much more quickly.

- plus you remove the stigma associated with private schooling (often you end up finding in private schools the kids who are unable to cope with the pressure of the regular system)
Reply With Quote
This user would like to thank amogles for this useful post:
  #31  
Old 26.01.2015, 14:05
Newbie
 
Join Date: Nov 2014
Location: Zurich
Posts: 8
Groaned at 2 Times in 2 Posts
Thanked 1 Time in 1 Post
sambhare has no particular reputation at present
Re: Taxation of school fees - Legal question

Agree with you...
Private schools put lot of unneccesory pressure...

For my son (4 year old) I will go for German school and for my daughter I will go for bilingual school.
Again thank you for your quick reply...
Reply With Quote
This user would like to thank sambhare for this useful post:
Reply

Tags
tax; school; legal;




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
International school vs local: it's a question of lifestyle hankag Family matters/health 32 18.04.2016 21:10
School fees in Switzerland Nil Other/general 19 31.03.2012 22:22
Question about tuition fees Ivi Family matters/health 6 22.11.2011 22:48
Notary Fees question PTKate Housing in general 10 10.03.2009 12:47
tax, & school fees jojo Finance/banking/taxation 28 20.09.2007 16:18


All times are GMT +2. The time now is 14:33.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0