Hi,
I have a job offer from a company in Vaud and I am trying to calculate the net pay. I am trying to figure out what the tax at source will be. EU person, unmarried, working as a full-time employee in VD, and living in VD with a B permit and for simplicity let's assume they start working Jan 1st.

When I asked the company for an estimate of pension etc. deductions and taxes, for tax at source they gave me an estimate of ~25% for a CHF10K monthly gross salary.

However, looking at the 2010 tax at source tables for VD
I see that for a 10K gross the tax at source is ~19%.

Can someone advise what will be the real rate on the paycheck?
For those working in VD do you see the actual tax rates mentioned on the tables or are they just more like "guidelines" for local companies?

A 6% difference might sound small, however I currently have a job and
I need accurate info in order to decide if I accept or decline.

Lastly, if someone starts working in the middle of the year, will tax at source be the same every month as if they had started working Jan 1st, since it's based on their monthly income?
Any chance they can get a refund (gross yearly income would be under 120K of course since they started working late in the year).

Thank you so much.

Hi your situation is similar to mine: tax rate would be around 18%-19%, social deduction and unemployment insurance will count for another 6-7%. After each year you need to file a tax declaration to get a detailed tax calculation.

The tables are the actual rates of tax that is withheld at source.

If you earn over 120k a year, you'll also have to fill in a tax return; we've found that we always get a rebate, as there are quite a lot of deductions that can be made (plus I think they nudge up the 'at source' rate to stop us dodgy foreign types leaving owing any money).

If you get an extra payment in a month, such as bonus or moving allowance, then your tax rate will shoot up for that month - the calculation takes each month, multiplies it by 12 then assumes you're on that pay rate for the year! It all comes out in the wash in the tax return, though, which pays more interest than bank accounts.

Make sure you're looking in the correct column for married, kids, etc.

Yes, you're right, if you start mid-year they apply the sort of virtual calculation as above, so even though you'll have earned 60k, you're taxed as if you've earned 120k, because it's all done monthly.

Working on a 25% deduction will be a pretty good rule of thumb for take home pay.

http://www.comparis.ch/steuern/quell...r/default.aspx

Filling in the information, they will tell you how much you should pay, and it is quite accuate.

Once your yearly salary above 100,000 CHF, you could also do tax declaration. And you might have to contact Canton Finanzverwaltung, they will answer your questions. I called them because of got married, so they told me to provide information to HR, then everything will be modified accordingly. So i would suggest to call them then you can be sure about it.

Where can you do the tax declaration? and how?

The tax authorities will - eventually - send you a return. For us: we came in March 2008, hubby's company sent in their tax stuff early 2009 at which point the tax authorities realised we existed, then sent us a form mid-year, we asked for an extension (happens all the time here) then finally filed the return Dec 2009 (and did 2009's almost straight after); the rebate came through in Jan 2011, for 08 and 09 years.

This is, by all accounts, a normal timetable for the newly arrived. We're now in the system, so have just sent our paperwork off to the accountant for 2010. But for the first year, the form will arrive really, really late once your company has sent in your details at end of year.

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Hi there, I found this tool very useful as it allowed me to estimate this magic number that's been struggling me for some time. However, my calculation resulted in only 11% tax rate / month... which seems lower than I expected... (postdoc job in Vaud, 80-85k gross / year, married, no children). First question: is this 11% realistic?

Second, my contract deduces around 13% for unemployment and working insurances and pension. This leads me to the conclusion that the total deductions (taxes + insurance + pension) are around 26 %. Does this sound reasonable?

Thank you all!

Hi,
I clarify quickly:
The 120K thing is not valid in Vaud, most replies here are for other cantons.


http://www.vd.ch/fr/themes/etat-droi...rce/sourciers/


Here you can only be "automatically taxed" (a la source thing) or make a "simplified declaration" to amend possible mistakes-

Which, when i-ll get time will ask/explain in a dedicated topic-
But basically there's very little change you can have from the automatically taken amount.
Yes even after considering all the "variables" one can deduce, this is not only "linked to my situation".

The approximate 25% overall deduction info you received from HR is pretty accurate. I'm in a similar situation to what you've quoted living in Vaud, being single with no dependents.

As for receiving a tax refund it depends on the individual situation so no one here can really tell you what you may or may not receive. I have received a refund in the past but again it depends on what you can claim as an expense when you file your return.