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Old 28.04.2015, 13:59
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Taxes for non-resident spouse's foreign income

My husband and I are both Indian citizens. He is a B permit holder and has been living in St. Gallen since 2013. Meanwhile, I have been living and working in the U.S. and therefore did not have any residence permit for Switzerland.

Since I have already paid U.S. taxes on my 2014 U.S. income, does my husband need to pay taxes on my income as well? Apparently his tax advisor said he had to do so for my income but this double taxation seems to be unreasonable.

Any advice would be much appreciated! Thank you.
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Old 28.04.2015, 14:04
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Re: Taxes for non-resident spouse's foreign income

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My husband and I are both Indian citizens. He is a B permit holder and has been living in St. Gallen since 2013. Meanwhile, I have been living and working in the U.S. and therefore did not have any residence permit for Switzerland.

Since I have already paid U.S. taxes on my 2014 U.S. income, does my husband need to pay taxes on my income as well? Apparently his tax advisor said he had to do so for my income but this double taxation seems to be unreasonable.

Any advice would be much appreciated! Thank you.
What answer would you like?
1) The truth
2) Something that would make you happy

In Switzerland a marital couple is liable for tax on global joint income. At the same time any tax paid elsewhere would be deducted from the Swiss return.

If you want to take advantage of the greater deductions in Switzerland and the lower tax rate curve, your husband will need to declare full global income.

It is quite a bit more reasonable than the US approach.
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Old 28.04.2015, 14:07
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Re: Taxes for non-resident spouse's foreign income

Although you have to declare all the income, as dodgyken says you also declare the taxes you have paid. So you won't truly pay double but you will file double returns.
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Old 28.04.2015, 14:18
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Re: Taxes for non-resident spouse's foreign income

AFAIK Switzerland compute tax per family. If tax is deducted at the source for your husband he can tell employer to apply tax slabs as per both working. For e.g In Zurich if some family is having a child and single earner then correct tax code is B1 but if both are working then tax code is C1. It is independent of the spouse location or salary.

Of course you could always file tax return at the end of the year and take benefit of the double tax avoidance treaty if it exists between countries and ask for refund.

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My husband and I are both Indian citizens. He is a B permit holder and has been living in St. Gallen since 2013. Meanwhile, I have been living and working in the U.S. and therefore did not have any residence permit for Switzerland.

Since I have already paid U.S. taxes on my 2014 U.S. income, does my husband need to pay taxes on my income as well? Apparently his tax advisor said he had to do so for my income but this double taxation seems to be unreasonable.

Any advice would be much appreciated! Thank you.

Last edited by simple_person; 28.04.2015 at 14:29.
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Old 03.05.2015, 22:01
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Re: Taxes for non-resident spouse's foreign income

Thank you for all of your responses! Our tax advisor also explained that since I was a non-resident last year my husband's income here will be taxed at a rate determined by our total worldwide income.
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