Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #1  
Old 31.10.2015, 11:27
Junior Member
 
Join Date: Oct 2012
Location: Zürich
Posts: 86
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
Dest.Swiss has no particular reputation at present
Quellensteuer - Less than my annual tax burden?

Hi Everyone,

I was hoping all of you could give me some advice and share your experiences about annual tax declarations.

I'm a permit B holder so I do pay source income tax every month and I do make over the 120K threshold so I am required to do an income tax declaration every year. I thought this was a good thing.

However, i just had a tax preparer do my taxes for 2014 (i know a bit late) and my taxes are very simple to do, no kids, no special deductions except for my pillar 2 contributions.

I've found out that i actually need to pay more taxes back! Is this right? I know the quellensteuer is based monthly on a percentage of your monthly income that moves with the money you make that month. There is one month out of the year where i get a bonus and it shoots my quellensteuer out the roof! So if anything, i thought i would get a return due to paying so much more that one month.

Thanks for your sharing your experiences,
Reply With Quote
  #2  
Old 31.10.2015, 11:37
mirfield's Avatar
Moddy McModface
 
Join Date: Apr 2007
Location: Basel
Posts: 8,189
Groaned at 50 Times in 44 Posts
Thanked 8,041 Times in 2,943 Posts
mirfield has a reputation beyond reputemirfield has a reputation beyond reputemirfield has a reputation beyond reputemirfield has a reputation beyond reputemirfield has a reputation beyond reputemirfield has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Quellensteuer seems to assume some reasonably generous allowances, so if, when you use your real figures, these aren't applicable or you have more tax liabilities, then you may end up paying more.

Anecdotally it seems about 50/50 whether you'll pay more or get a refund, which makes sense if Quellensteuer is calculated on some sort of average.
Reply With Quote
The following 10 users would like to thank mirfield for this useful post:
  #3  
Old 31.10.2015, 19:14
Junior Member
 
Join Date: Dec 2011
Location: Bassersdorf ZH
Posts: 49
Groaned at 0 Times in 0 Posts
Thanked 26 Times in 17 Posts
Andytax has made some interesting contributions
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
except for my pillar 2 contributions.
Have you really been contributing to pillar 2 or pillar 3? And if it was pillar 2, how many?

Cheers
Andy
Reply With Quote
  #4  
Old 31.10.2015, 19:21
miniMia's Avatar
Forum Legend
 
Join Date: Apr 2007
Location: romandie
Posts: 8,848
Groaned at 85 Times in 76 Posts
Thanked 7,391 Times in 3,729 Posts
miniMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Tax at source uses a % for communal taxes that is the average over the canton. If you do your returns, you use the actual commune tax rate which in your case seems to be higher than the average.
Reply With Quote
The following 5 users would like to thank miniMia for this useful post:
  #5  
Old 31.10.2015, 22:58
Junior Member
 
Join Date: Oct 2012
Location: Zürich
Posts: 86
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
Dest.Swiss has no particular reputation at present
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
Have you really been contributing to pillar 2 or pillar 3? And if it was pillar 2, how many?

Cheers
Andy
Only pillar 2, i don't have a pillar 3 account.

That reminds me, if i have a pillar 3 account what is the maximum deduction i can get with this per year? Also any difference in deductions between 3a and 3b?
Reply With Quote
  #6  
Old 31.10.2015, 23:00
Junior Member
 
Join Date: Oct 2012
Location: Zürich
Posts: 86
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
Dest.Swiss has no particular reputation at present
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
Tax at source uses a % for communal taxes that is the average over the canton. If you do your returns, you use the actual commune tax rate which in your case seems to be higher than the average.
Thanks miniMia, this seems exactly what it is. I just wanted to know if this was a common thing and if other people usually pay more at the end of the year?
Reply With Quote
  #7  
Old 01.11.2015, 09:44
Junior Member
 
Join Date: Dec 2011
Location: Bassersdorf ZH
Posts: 49
Groaned at 0 Times in 0 Posts
Thanked 26 Times in 17 Posts
Andytax has made some interesting contributions
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
Only pillar 2, i don't have a pillar 3 account.
So have a look into your tax declaration, Point 16.1. There is the full amount you paid into your second pillar.


Third pillar deduction and taxation you can find here.

Cheers
Andy
Reply With Quote
  #8  
Old 01.11.2015, 09:55
swisspea's Avatar
Forum Legend
 
Join Date: May 2008
Location: From one side of lake Zurich to the other...
Posts: 5,505
Groaned at 33 Times in 22 Posts
Thanked 5,031 Times in 2,431 Posts
swisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Assuming you are in Zurich, the Quellensteuer rate is set for the whole Canton. If you live in Stadt Zurich or one of the close by town areas, you very likely will need to 'top up' and it could be a few thousand. The 'good news' is that once you actually submit, it will take quite a while to come back to you, and even then when you do get a big bill, you can write a letter quickly to them and ask for a 'payment plan'... We had no problem getting ours split over 4 or 6 monthly payments...

We are a double income with one full and one part-time salary and do quellensteuer plus tax returns but our salaries have been slowly coming down each year due to me working less, so we did not get a top up bill last year...we also have three kids so there are some deductions here and there.

If you have the extra money, you have the option of putting the money into a top up pension (pillar 3) and that reduces your taxable amount. Your accountant may be able to tell you what amount would be needed to be set aside to avoid the extra tax liability. We pay about 200chf per year to have our taxes done professionally...
Reply With Quote
This user would like to thank swisspea for this useful post:
  #9  
Old 03.11.2015, 14:15
Junior Member
 
Join Date: Oct 2012
Location: Zürich
Posts: 86
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
Dest.Swiss has no particular reputation at present
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
If you live in Stadt Zurich or one of the close by town areas, you very likely will need to 'top up' and it could be a few thousand. The 'good news' is that once you actually submit, it will take quite a while to come back to you, and even then when you do get a big bill, you can write a letter quickly to them and ask for a 'payment plan'
Thanks for this info, very useful!

One question about what you mentioned above. Is there any risk about just waiting for the bill for the difference or "top up" as you call it? Or is there something we should do proactive to pay it advance? I'm just concerned about being charged for interest if there is still money due.

I will definitely open a pillar 3 account as well as raise my percentage for my pillar 2 account to make sure i get enough credits to not pay more.

Thanks again!
Reply With Quote
  #10  
Old 03.11.2015, 14:17
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,721
Groaned at 209 Times in 181 Posts
Thanked 11,030 Times in 6,255 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
Thanks for this info, very useful!

One question about what you mentioned above. Is there any risk about just waiting for the bill for the difference or "top up" as you call it? Or is there something we should do proactive to pay it advance? I'm just concerned about being charged for interest if there is still money due.

I will definitely open a pillar 3 account as well as raise my percentage for my pillar 2 account to make sure i get enough credits to not pay more.

Thanks again!
You will be charged interest if you have not paid in full. When you do the tax return you can see the tax payable assuming you use the computer program from the canton to fill in the form.
Reply With Quote
  #11  
Old 03.11.2015, 14:21
Junior Member
 
Join Date: Oct 2012
Location: Zürich
Posts: 86
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
Dest.Swiss has no particular reputation at present
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
You will be charged interest if you have not paid in full. When you do the tax return you can see the tax payable assuming you use the computer program from the canton to fill in the form.
So that is the thing, i just completed my taxes for last year and sent them in the mail, but there is a difference and I do owe more. So my question is, do I wait for a bill from them or do I proactively pay the difference somehow? I assume if I don't pay now, i'll be charged for interest, but i'm just not sure how I proceed to pay the difference.

Thanks!
Reply With Quote
  #12  
Old 03.11.2015, 19:25
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,721
Groaned at 209 Times in 181 Posts
Thanked 11,030 Times in 6,255 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
So that is the thing, i just completed my taxes for last year and sent them in the mail, but there is a difference and I do owe more. So my question is, do I wait for a bill from them or do I proactively pay the difference somehow? I assume if I don't pay now, i'll be charged for interest, but i'm just not sure how I proceed to pay the difference.



Thanks!

I always paid far too much in advance, they pay interest on credit balances & its tax free. They will refund at any time so use them as a high interest bank account.
Reply With Quote
  #13  
Old 03.11.2015, 20:20
swisspea's Avatar
Forum Legend
 
Join Date: May 2008
Location: From one side of lake Zurich to the other...
Posts: 5,505
Groaned at 33 Times in 22 Posts
Thanked 5,031 Times in 2,431 Posts
swisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond repute
Re: Quellensteuer - Less than my annual tax burden?

Quote:
View Post
So that is the thing, i just completed my taxes for last year and sent them in the mail, but there is a difference and I do owe more. So my question is, do I wait for a bill from them or do I proactively pay the difference somehow? I assume if I don't pay now, i'll be charged for interest, but i'm just not sure how I proceed to pay the difference.

Thanks!
When this happened to us in Canton Zurich, there was no 'liability' until they issue the first bill (invoice) which has a deadline. Then if you can't pay immediately you have to write a letter (we emailed and they said they would accept an email the first time but in future to always write a proper letter) - stating the payment plan that you would like. They then re-issue the new invoices with the amounts separated into monthly payments, and it's only once these come that you need to start paying.

Because it's a Quellensteuer - tax return - adjustment - extra invoice situation, they don't expect any interim payments 'in advance' and any interest payable is a very small amount as it's not interest on the whole year's tax, just a tiny bit of interest from paying late on the adjustment amount..
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Reduce USA Tax Burden arobb Finance/banking/taxation 6 07.06.2015 21:51
Can I sell my improted car, less than one year junhuaq Transportation/driving 3 03.03.2011 16:38
france - tax burden Dack Rambo Finance/banking/taxation 4 17.10.2010 13:08
Quellensteuer vs. annual tax obligation Village Idiot Finance/banking/taxation 15 24.10.2009 00:07
Tax to get car into CH on car owned for less than 6-months NWCLass Transportation/driving 1 29.04.2009 00:04


All times are GMT +2. The time now is 00:26.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0