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Old 03.02.2015, 18:40
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Permit B holder, but have to submit ordinary declaration (Vaud)

Hello. I am working in the Canton of Vaud, currently with a Permit B and my gross income is (much-much) less than 120'000.- CHF. I have received a letter by the Tax Office to submit an ordinary Tax Declaration and I have a couple of questions on this procedure.

----

Background: For the past 3 years, I had been filling in the Déclaration d'impôt simplifiée, in order to get some tax returns - not much, but still something. I had made this procedure twice, for 2011 and 2012, without any problems.

Attached to each declaration, I also had my bank accounts, where I'd receive some interest. One was subject to tax at source, the other not, since the amount gained through interest was very low.

In 2013, I also submitted a simplified tax declaration, following the exact same procedure. However, I received a letter from the authorities, stating that my application would not be considered and I had to refill an ordinary tax declaration for 2013, because...
Quote:
... vous remplissiez les conditions vous permettant de bénéficier d'une imposition selon la procédure ordinaire au sens de l'article 137 alinéa 1 de la loi du 4 juillet 2000 sur les impôts directs cantonaux (LI) dès le 1er Javier 2013.

(en)... you meet the conditions allowing you to benefit from tax under the ordinary procedure under Article 137 paragraph 1 of the Law of 4 July 2000 concerning the cantonal direct taxes (LI) from 1 January 2013.
The 2000-07-04 law in question states:
Quote:
Art. 137
Procédure ordinaire
1. Les personnes assujetties à l'impôt à la source sont imposables selon la procédure ordinaire sur leur fortune et leurs revenus qui ne sont pas soumis à l'impôt à la source. L'article 7 s'applique par analogie au calcul du taux de l'impôt.
2. Si le revenu brut soumis à l'impôt à la source du contribuable ou de son conjoint qui vit en ménage commun avec lui excède un montant fixé par le Conseil d'Etat, une taxation est faite ultérieurement selon la procédure ordinaire; l'impôt retenu à la source est imputé sur l'impôt perçu selon la procédure ordinaire.

(en) 1. Persons subject to tax at source are taxable under the ordinary procedure on their wealth and income that are not subject to tax at source. Article 7 shall apply by analogy to the calculation of tax rates.
2. If the gross income subject to tax at the source of the taxpayer or spouse who lives in the same household with him exceeds an amount fixed by the Council of State, a tax is subsequently made in the ordinary way; tax withheld at source is credited against the tax levied under the ordinary procedure.
I have also received the ordinary tax declaration for 2014, as well, so they require me to do the same procedure for 2014. Now, I have been reading very carefully the instructions over the past few days and I have also visited the Tax Office in Lausanne, to ask for clarifications. Their response is that I got the letter because I receive income which is not subject to withholding tax: we're now debating on an amount of, say, 100.- CHF per year. Thus, I am required to fulfill the ordinary tax declaration, declaring everything that I have in Switzerland.

----

Situation: I will go for a 2nd time in the following days to ask further questions. Before that, I am opening this thread to ask some questions here:
  1. Has anybody, working under a Permit B, taxed at source and with an income of less than 120K CHF ever received such a letter? In other words, does it really concern me?
  2. I have carefully prepared a draft of my tax declaration using the electronic application that the Canton provides. According to that, I have to pay even more taxes, mainly because there is also a "fortune tax", imposed by the Canton, regarding your fortune that you have declared in your bank accounts. I don't understand the following: the concept of tax at source is that you pay once your taxes, through your salary and that's it. Why would I be required to pay additional tax?

My main confusion on this issue is that nobody under a Permit B that I have asked has ever received such a letter and of course no one is fulfilling an ordinary tax declaration. It makes no sense to me that, just because I have been filling in simplified tax declarations for the past years (without being required to) I have to undergo this procedure and pay additional tax, as well, contrary to everyone else living on Permit B and doesn't just care.
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Old 03.02.2015, 19:05
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Re: Permit B holder, but have to submit ordinary declaration (Vaud)

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Hello. I am working in the Canton of Vaud, currently with a Permit B and my gross income is (much-much) less than 120'000.- CHF. I have received a letter by the Tax Office to submit an ordinary Tax Declaration and I have a couple of questions on this procedure.

----

Background: For the past 3 years, I had been filling in the Déclaration d'impôt simplifiée, in order to get some tax returns - not much, but still something. I had made this procedure twice, for 2011 and 2012, without any problems.

Attached to each declaration, I also had my bank accounts, where I'd receive some interest. One was subject to tax at source, the other not, since the amount gained through interest was very low.

In 2013, I also submitted a simplified tax declaration, following the exact same procedure. However, I received a letter from the authorities, stating that my application would not be considered and I had to refill an ordinary tax declaration for 2013, because...
The 2000-07-04 law in question states:


I have also received the ordinary tax declaration for 2014, as well, so they require me to do the same procedure for 2014. Now, I have been reading very carefully the instructions over the past few days and I have also visited the Tax Office in Lausanne, to ask for clarifications. Their response is that I got the letter because I receive income which is not subject to withholding tax: we're now debating on an amount of, say, 100.- CHF per year. Thus, I am required to fulfill the ordinary tax declaration, declaring everything that I have in Switzerland.

----

Situation: I will go for a 2nd time in the following days to ask further questions. Before that, I am opening this thread to ask some questions here:
  1. Has anybody, working under a Permit B, taxed at source and with an income of less than 120K CHF ever received such a letter? In other words, does it really concern me?
  2. I have carefully prepared a draft of my tax declaration using the electronic application that the Canton provides. According to that, I have to pay even more taxes, mainly because there is also a "fortune tax", imposed by the Canton, regarding your fortune that you have declared in your bank accounts. I don't understand the following: the concept of tax at source is that you pay once your taxes, through your salary and that's it. Why would I be required to pay additional tax?

My main confusion on this issue is that nobody under a Permit B that I have asked has ever received such a letter and of course no one is fulfilling an ordinary tax declaration. It makes no sense to me that, just because I have been filling in simplified tax declarations for the past years (without being required to) I have to undergo this procedure and pay additional tax, as well, contrary to everyone else living on Permit B and doesn't just care.
You chose to get into the tax declaration process before it's necessary, just complete the full form as asked. As there is very little or more likely zero exchange of info at the moment they will believe what you tell them.
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