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Old 26.09.2015, 19:21
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Understanding transition from Quellensteuer to Tax returns

Hi all

I live in Zug and throughout the year I was just below the 110k limit so was always paying through my employer, at source.

Now I switched jobs, work in ZH and I am exactly at 120k. I am not sure what happens now and what I should be looking out for.

1) Since 9 out of the year's 12 months I was paid at source, my first actual salary that triggers a tax return will be on October.

Will I get a tax return request from the Zug office or will it happen next year as I have already been taxed at source for most of the year?

2) If I do get asked to do a tax return, I guess it will be for the whole 12 months of 2015 and if I overpaid get a refund or vice versa pay back what's missing?

3) Is there anything I need to be extra careful about when doing my first return? I have been reading on older threads for tips but wonder if there is something I need to be extra careful about.

4) Which gemeinde I live now in matters right? Unlike tax at source, taxes vary if you live in Cham, Baar or Zug.

As always, thanks in advance for all the help!

P.S It's not actually from 120,001 chf that this gets triggered right?

Last edited by Troublawesome; 26.09.2015 at 19:41.
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Old 26.09.2015, 20:06
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Re: Understanding transition from Quellensteuer to Tax returns

Paragraph 12 of this Ct. Zurich leaflet may be useful:

http://www.steueramt.zh.ch/dam/finan...t_qst15_en.pdf

The way I read it is the taxpayer needs to earn CHF 120'000.01 on an annualized basis to be subject to Ct. Zurich ordinary income tax assessment.
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Old 27.09.2015, 00:19
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Re: Understanding transition from Quellensteuer to Tax returns

I think I'll do a tax return anyway then so worth knowing about these for the future.
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Old 27.09.2015, 09:33
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Re: Understanding transition from Quellensteuer to Tax returns

Thinking about it - you should actually have no "problem" with tax return this year unless there are some other payments that you earned (bonus, benefits considered taxable etc) which would bring your total income over 120k.

The rules speak about annualized income of over 120k. The annualized is relevant if you only earn part of the year. If you worked at 110k for 8 months and at 120k the rest of the year, your annualized income will remain below 120k, actually at about 113.5k and us no need for tax return. Again, unless you received other income.

Different situation would be if you only arrived here in September and worked for the 4 months at 120.001k. Then the annualized income exceeds the threshold and you need to file tax return.

Next year there will be no question about this. Tax return will be required.

I assume you have B permit as you pay tax at source. This will continue the same - you will still be taxed at source until you have c permit (or marry a Swiss...) and when you submit the tax return, depending on your community, you may need to pay more taxes or get a refund. They will credit tax at source against your tax obligations and whatever is left or missing needs to be settled.
If your gemeinde is a low tax one vs. the average in Zug, you should get money back and vice versa.
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Old 27.09.2015, 11:07
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Re: Understanding transition from Quellensteuer to Tax returns

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Thinking about it - you should actually have no "problem" with tax return this year unless there are some other payments that you earned (bonus, benefits considered taxable etc) which would bring your total income over 120k.

The rules speak about annualized income of over 120k. The annualized is relevant if you only earn part of the year. If you worked at 110k for 8 months and at 120k the rest of the year, your annualized income will remain below 120k, actually at about 113.5k and us no need for tax return. Again, unless you received other income.

Different situation would be if you only arrived here in September and worked for the 4 months at 120.001k. Then the annualized income exceeds the threshold and you need to file tax return.

Next year there will be no question about this. Tax return will be required.

I assume you have B permit as you pay tax at source. This will continue the same - you will still be taxed at source until you have c permit (or marry a Swiss...) and when you submit the tax return, depending on your community, you may need to pay more taxes or get a refund. They will credit tax at source against your tax obligations and whatever is left or missing needs to be settled.
If your gemeinde is a low tax one vs. the average in Zug, you should get money back and vice versa.
Is the 120k after deductions for AHV, 2nd Pillar, & insurances, thats probably about 12% of salary on average. I ask this as you only put net income on the tax return,
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Old 27.09.2015, 11:30
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Re: Understanding transition from Quellensteuer to Tax returns

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Is the 120k after deductions for AHV, 2nd Pillar, & insurances, thats probably about 12% of salary on average. I ask this as you only put net income on the tax return,
No, it is gross income that counts for the 120k test.
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