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Old 25.07.2015, 09:45
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Should be taxed at source, but I'm not?

Hi,

I started working in Switzerland this month (haven't worked from January through June of this year), have a B permit, don't earn more than 120.000 CHF per year, and just received my first salary.
According to various online calculators the difference between my net and gross salary should be around 1700 CHF, however when I look at the pay slip only about 700 CHF is deducted (which includes: social security contribution, unemployment contribution and pension plan).
The field 'tax at source gross' is empty, and the 'legal net salary' is about a 1000 CHF higher than I expected.
Don't get me wrong, I'm not complaining but also don't want to be surprised with a 6000 CHF bill at the end of the year.

Can anyone explain what's going on here? Thanks so much!

Anke
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Old 25.07.2015, 09:47
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Re: Should be taxed at source, but I'm not?

Seems your HR department made a big mistake. Contact them and ask them to recalculate and deduct taxes. As yes, you´d probably get a bigger bill at the end of the year (unless you work for a NGO or something like that)
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Old 25.07.2015, 09:52
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Re: Should be taxed at source, but I'm not?

Thank you roegner! No I don't work for an NGO. Thought maybe there is a tax free threshold I don't know about or something.
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Old 25.07.2015, 11:04
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Re: Should be taxed at source, but I'm not?

You are very lucky, just save the Sfr 600 every month, in case someone notices! Don't inform the company, it is their responsibility to pay your taxes.

My daughter paid no taxes for 5 years, even after being employed by 3 companies, she only started paying taxes when she got her 'C' permit.
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Old 25.07.2015, 11:09
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Re: Should be taxed at source, but I'm not?

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You are very lucky, just save the Sfr 600 every month, in case someone notices! Don't inform the company, it is their responsibility to pay your taxes.

My daughter paid no taxes for 5 years, even after being employed by 3 companies, she only started paying taxes when she got her 'C' permit.
Interesting that this is even possible in such an organized country.
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Old 25.07.2015, 11:34
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Re: Should be taxed at source, but I'm not?

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You are very lucky, just save the Sfr 600 every month, in case someone notices! Don't inform the company, it is their responsibility to pay your taxes.

My daughter paid no taxes for 5 years, even after being employed by 3 companies, she only started paying taxes when she got her 'C' permit.
Crap, it is your responsibility to pay tax either directly or via your employer
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Old 25.07.2015, 12:42
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Re: Should be taxed at source, but I'm not?

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Thank you roegner! No I don't work for an NGO. Thought maybe there is a tax free threshold I don't know about or something.
Roegner is correct and you are responsible for paying your taxes not your company. If you stay below around 18,000 - 20,000 a year you have no obligation for LLP and you do not pay taxes as it is under the threshold. You do pay AVS etc. This is not the case with you I understand.

So contact your HR as it is only a matter of time that the fisc will find you (may take a year or two..)
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Old 25.07.2015, 12:54
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Re: Should be taxed at source, but I'm not?

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Roegner is correct and you are responsible for paying your taxes not your company. If you stay below around 18,000 - 20,000 a year you have no obligation for LLP and you do not pay taxes as it is under the threshold. You do pay AVS etc. This is not the case with you I understand.

So contact your HR as it is only a matter of time that the fisc will find you (may take a year or two..)
No I will definitely have more income than 20,000 this year.

Or do I start paying taxes when I've reached the +/- 20,000 maybe?
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Old 25.07.2015, 13:03
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Re: Should be taxed at source, but I'm not?

no you start paying tax immediately
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Old 25.07.2015, 13:16
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Re: Should be taxed at source, but I'm not?

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Crap, it is your responsibility to pay tax either directly or via your employer
It is the employee's responsibility to inform the employer and the tax authority for all tax-related events.
It is the employer's responsibility to deduct tax at source.
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Old 25.07.2015, 13:23
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Re: Should be taxed at source, but I'm not?

It is possible to be on a B permit and not be on qs, if you have a partner who is Swiss or on a C permit as you file your tax return jointly. I was in the same position, where I was on qs, but when my wife got her C permit I automatically came off qs, and the 2 month tax deducted at source refunded.

OR... the OPs HR just dropped the ball
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Old 25.07.2015, 13:24
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It is the employee's responsibility to inform the employer and the tax authority for all tax-related events.
It is the employer's responsibility to deduct tax at source.
In any case, I will end up with the the bill I assume. Even if it's my employer who made a mistake.

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It is possible to be on a B permit and not be on qs, if you have a partner who is Swiss or on a C permit as you file your tax return jointly. I was in the same position, where I was on qs, but when my wife got her C permit I automatically came off qs, and the 2 month tax deducted at source refunded.

OR... the OPs HR just dropped the ball
No Swiss or C-permit partner either.

Last edited by 3Wishes; 25.07.2015 at 23:13. Reason: merging consecutive replies
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Old 25.07.2015, 13:28
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Re: Should be taxed at source, but I'm not?

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No Swiss or C-permit partner either.
OK, well option B then. HR need to pick up the ball they dropped, go and speak to them on monday.
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Old 25.07.2015, 13:29
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Re: Should be taxed at source, but I'm not?

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In any case, I will end up with the the bill I assume. Even if it's my employer who made a mistake.
Inform your HR and they will retroactively correct it next month.
Your net pay will be lower as two months tax will be deducted.

Common practice is actually to deduct the highest scale of tax at source when the permit is not clear (generally single with no children). Like this, the employer is sure to pay sufficient tax at source.
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Old 25.07.2015, 21:59
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Re: Should be taxed at source, but I'm not?

and you did not come here perhaps on sufficient funds with only permit de sejour and then changed the permit when you found your job? Bought a house?

most probably it is HR messing up. Anyway not a big deal. They will correct it. relax
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Old 25.07.2015, 23:18
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Re: Should be taxed at source, but I'm not?

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You are very lucky, just save the Sfr 600 every month, in case someone notices! Don't inform the company, it is their responsibility to pay your taxes.

My daughter paid no taxes for 5 years, even after being employed by 3 companies, she only started paying taxes when she got her 'C' permit.
As a matter of interest, I wonder how long the tax office can claim back unpaid taxes. Surely it is the responsibility of the individual to pay taxes they know they should be paying- or it is just pure criminal fraud.
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Old 25.07.2015, 23:34
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Re: Should be taxed at source, but I'm not?

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As a matter of interest, I wonder how long the tax office can claim back unpaid taxes. Surely it is the responsibility of the individual to pay taxes they know they should be paying- or it is just pure criminal fraud.
You are only obliged to keep tax documents 10 years so I assume 10 years to claim back taxes unless there was a major fraud involved.

You are responsible to pay your taxes so eventually the bill will come to you. In the interim likely a stimulating three way discussion between the tax office and your employers and you.
If you do have to pay eventually you can request to pay in instalments as the fault was not yours.
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Old 25.07.2015, 23:42
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Re: Should be taxed at source, but I'm not?

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It is the employee's responsibility to inform the employer and the tax authority for all tax-related events.
It is the employer's responsibility to deduct tax at source.
Indeed, but the emploee is still ultimately respnsible for paying.

Tom
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