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Old 20.10.2015, 13:51
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Witholding tax Tariffs for married couples

Hello,

I have had a search for an hour through the forums and cant quite find the information I need, apologies if this is a repeated question!

My husband has recently started a full time job in Zurich and is on 140000CHF and a B permit.

Myself and our two children are remaining in the UK. HMRC have declared him a non resident and he does not get taxed in the UK. I am a stay at home mum so have no income.

When his company's HR went through all the various taxes etc with us they said he would be classed as married with children despite us not living there and would be taxed at source and we would be eligible for child benefit (or whatever the Swiss equivalent is).

He has just had is first full months pay slip and from what we can tell he has been taxed as a single person. I am presuming this is a mistake? Or have we been given incorrect information. It makes quite a lot of difference in pay and we'd have to seriously consider whether he can stay if this is the case!

Is it HR that decide on this rate or the canton?

I hope this is enough information for anyone to help, I am still trying to get my head round a totally different tax system!

Thank you in advance for any help
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Old 20.10.2015, 14:20
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Re: Witholding tax Tariffs for married couples

Looks like he is being applied tax code of single person rather than married with children. In any case he will need to file tax return at the end of the year because his salary is greater than 120k. In Switzerland tax return is per family on their worldwide income. IMO he will definitely get the tax back with this return if anything extra is deducted because of the wrong tax code.

I would say HR should contact tax department and get the tax code changed. I think there is some form on tax department website which I can't find at the moment.

For child allowance also there is some form which needs to be filled and send to social department. It will be paid from the date your husband started working. HR should be helping there as well.

Last edited by simple_person; 20.10.2015 at 15:03.
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Old 20.10.2015, 14:27
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Re: Witholding tax Tariffs for married couples

I believe this is one if the things that varies by canton.
I think the majority of cantons would tax him as a single man without family if he is living here alone without the family although some cantons (Neuchâtel being one of them) would tax him as married with dependant children.
I don't know which category Zurich fall into but the best thing to do would be to contact the Zurich tax office and ask them directly.
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Old 20.10.2015, 14:39
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Re: Witholding tax Tariffs for married couples

The rates are set at cantonal level. It could be that the tax office assumed he was single as you aren't living here, but his HR department should have informed them. Even though he's on a B permit he should be able to ask to fill in a tax return as he's earning over the usual withholding tax limit of 120k a year. Also is he being paid for 12 months or 13 a year? The Swiss often make 13 monthly salary payments, the 13th being doubled (monthly salary x2) and paid out in November/December. So where he would get say, 6,000 a month normally in November or December he'd get 12,000.

These links may help:

http://www.steueramt.zh.ch/internet/...eitnehmer.html

https://www.ethz.ch/en/the-eth-zuric...alculator.html
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Old 20.10.2015, 15:10
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Re: Witholding tax Tariffs for married couples

I came to Zürich last year and started to work in June even my wife and daughter didn't come immediatly with me and I was taxed as single until September when they arrived and only on October I was taxed as married couple and only got child allowance on December but with retroactives since June.
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Old 20.10.2015, 15:28
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Re: Witholding tax Tariffs for married couples

Thank you for the help and links!

vmontalvao this is worrying news if that is the case as we based all our decisions upon taking this job that his pay would include the married tax tariff and child benefits without these I dont think we can afford for him to remain in Switzerland as its quite a large amount of difference in money.

I know he gets paid 12 months not 13 so I dont think it is that either.

Hopefully his HR will get back to him today with some more information, we're due to ship out his furniture tomorrow and I dont know whether to delay in now!

Thank you again for your time
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Old 20.10.2015, 15:33
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Re: Witholding tax Tariffs for married couples

I'm not sure but I think he can still apply for child allowance even the kids are living abroad. He may need to prove that they aren't receiving any other kind of allowance abroad but is better he confirm it with his HR department.
But for being taxed as married couple I'm almost sure you'll need to move to Switzerland.


Good luck
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Old 20.10.2015, 15:36
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Re: Witholding tax Tariffs for married couples

The tax difference should only be 1k/month or so.

If you are not getting child benefits in the UK, then you will get the Swiss ones.

Tom
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Old 20.10.2015, 17:56
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Re: Witholding tax Tariffs for married couples

Quote:
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I'm not sure but I think he can still apply for child allowance even the kids are living abroad. He may need to prove that they aren't receiving any other kind of allowance abroad but is better he confirm it with his HR department.
But for being taxed as married couple I'm almost sure you'll need to move to Switzerland.


Good luck
Quote:
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The tax difference should only be 1k/month or so.

If you are not getting child benefits in the UK, then you will get the Swiss ones.

Tom
Even if you are getting child benefits in the UK you can get them 'topped up' in Switzerland if the Swiss benefit is higher than the UK one ( which it is). You get the UK allowance from the UK and then an additional amount here so that the total is equal to the Swiss allowance but you have to provide them with the paperwork from the UK giving details of what you are receiving there. ( it's an E form but I can't remember the number off the top of my head)
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Old 20.10.2015, 17:59
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Re: Witholding tax Tariffs for married couples

thank you for all your help so far.

I have called the Zurich Tax office and my husband has finally managed to speak to HR. It turns out that they have him on tariff C i think - essentially saying that he is married and we both work. Apparently I have to prove I do not work and need a letter from the HMRC stating this.

I have been on hold to HMRC for most of afternoon! I was self employed up until 5 years ago when I stopped due to my youngest being born so dont have a P45 or anything else.

I can show that I didnt pay any tax for the last 5 years but not sure if this would be enough. Anyone have any experience of this? Maybe I should start a new thread?

Sorry for all the questions!
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Old 20.10.2015, 18:08
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Re: Witholding tax Tariffs for married couples

Normally a self declaration should do the job.

Did you husband's employer filled up this form correctly/completely?

http://www.steueramt.zh.ch/dam/finan...ungen_2014.pdf
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Old 20.10.2015, 18:45
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Re: Witholding tax Tariffs for married couples

I'm presuming they did not fill it in correctly but I really dont know! Its all so confusing!

When I called the tax office in Zurich they said that HR could just tell them that I dont work and that would be enough. When my husband spoke to HR they said it was not up to them it was the tax office that needed to tell them that it was wrong

My husband called the tax office again and they now say I need to prove that I dont work and they need a letter from HMRC that says this.

HMRC say all they can do is send my self assessment calculations for the last 5 years which show i had no income. Hoping this will be enough?
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