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Old 21.12.2015, 17:17
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Taxes after 13th salary :(

Hi all,


I am a married ex-pat, with two children, who lives Baden (AG) with a B residence permit.
Every month my company deducts a percentage from my salary to pay the taxes. It's called the 'Quellensteuerabzug'. This percentage is found in a table provided by the Kanton where you can find out how much they have to deduct on monthly basis.


Early this December I got my 13th salary plus an extra payment for the extra working time I had accumulated along the year. Today I got my salary slip for this month and I see that I have been deducted 4 times more in taxes than any other normal month of the year. This is so because this month I earned somewhat like three times my normal salary. I asked the accountant in my office why was I overcharged and she replied that she just follows what 'Kanton Monatstariff' says for every month. However if I sum up all the money I earned this year and I divide it by 12 the total tax I should pay on monthly bases is lower than what I have paid so far. I feel this monthly calculation is wrong and it should be year based. If I had known this before I would have much rather preferred to spend the over time having longer holidays than getting it paid.


After reading in the forum thread about other people in the same situation, I see that some of them, living in other kantons, requested successfully a year-based tax review. As I understand this year-based tax review is something you have to ask for but unfortunately I cannot find any information in the Aargau kanton's web page. I have to say though that my German is almost null. I would much appreciate if someone with the same problem in the Argau Kanton could explain or advice on the formalities to follow to request for this year-based tax calculation.


Thanks and merry Xmas,
Danny.
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Old 21.12.2015, 17:20
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Re: Taxes after 13th salary :(

It's quite normal, if you fill in a tax return you might have to pay more in tax so tread carefully...... not everybody will get a refund.

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Hi all,


I am a married ex-pat, with two children, who lives Baden (AG) with a B residence permit.
Every month my company deducts a percentage from my salary to pay the taxes. It's called the 'Quellensteuerabzug'. This percentage is found in a table provided by the Kanton where you can find out how much they have to deduct on monthly basis.


Early this December I got my 13th salary plus an extra payment for the extra working time I had accumulated along the year. Today I got my salary slip for this month and I see that I have been deducted 4 times more in taxes than any other normal month of the year. This is so because this month I earned somewhat like three times my normal salary. I asked the accountant in my office why was I overcharged and she replied that she just follows what 'Kanton Monatstariff' says for every month. However if I sum up all the money I earned this year and I divide it by 12 the total tax I should pay on monthly bases is lower than what I have paid so far. I feel this monthly calculation is wrong and it should be year based. If I had known this before I would have much rather preferred to spend the over time having longer holidays than getting it paid.


After reading in the forum thread about other people in the same situation, I see that some of them, living in other kantons, requested successfully a year-based tax review. As I understand this year-based tax review is something you have to ask for but unfortunately I cannot find any information in the Aargau kanton's web page. I have to say though that my German is almost null. I would much appreciate if someone with the same problem in the Argau Kanton could explain or advice on the formalities to follow to request for this year-based tax calculation.


Thanks and merry Xmas,
Danny.
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Old 21.12.2015, 17:37
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Re: Taxes after 13th salary :(

This is a fairly good tax calculator, you can compare what you might pay if you do make a tax declaration,

http://www.estv2.admin.ch/d/dienstle...uerrechner.htm

add up the taxes you already paid this year and compare them. Remember this is the average for the canton. You might be paying more tax if you do make a claim, it depends where you live.

Go to your tax office with your salary slips and ask them what they think, and also pick up the declaration forms.
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Old 21.12.2015, 17:38
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Re: Taxes after 13th salary :(

Hi fatmanfilms, thank you for your reply.

You scare me... Do you know how do they calculate the year based taxes? From my point of view (which normally differs from the Swiss) if I have paid more in taxes than what I would have paid if I had received all money I earned this year but split in 12 terms I think it cries for a refund.
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Old 21.12.2015, 17:39
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Re: Taxes after 13th salary :(

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Every month my company deducts a percentage from my salary to pay the taxes. It's called the 'Quellensteuerabzug'. This percentage is found in a table provided by the Kanton where you can find out how much they have to deduct on monthly basis.
Exactly as you say. Quellensteuer is calculated monthly and therefore the tax deducted is correct.

For this very reason, I've asked my employer to pay my 13th salary split over 12 months. It's more tax efficient this way, although the saving is not as big as it may seem at first.
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Old 21.12.2015, 17:44
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Re: Taxes after 13th salary :(

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This is a fairly good tax calculator, you can compare what you might pay if you do make a tax declaration,

http://www.estv2.admin.ch/d/dienstle...uerrechner.htm

add up the taxes you already paid this year and compare them. Remember this is the average for the canton. You might be paying more tax if you do make a claim, it depends where you live.

Go to your tax office with your salary slips and ask them what they think, and also pick up the declaration forms.
Hmm... Based in the result of this calculation I am still in debt of 3k.
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Old 21.12.2015, 17:44
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Re: Taxes after 13th salary :(

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Do you know how do they calculate the year based taxes? From my point of view (which normally differs from the Swiss) if I have paid more in taxes than what I would have paid if I had received all money I earned this year but split in 12 terms I think it cries for a refund.
You will have to fill out a tax form, and the tax rates will depend on the town you live in as well as the canton.

Based on that, and allowed deductions, the total tax may be higher or lower than tax as source, especially if you have any assets (property, bank accounts, etc., either here or abroad)

Tom
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Old 22.12.2015, 02:02
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Re: Taxes after 13th salary :(

Had the same concern. My calculation is that with 13th salary (at least for the range I was checking) it was some 500 extra tax paid per annum as compared to if it had been a 12 month contract.

I did look up this at internet and everyone claimed this tax cannot be reclaimed.

Has anyone successfully reclaimed the extra tax for the 13th salary?
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Old 22.12.2015, 09:36
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Re: Taxes after 13th salary :(

Isn't the best thing to do is to ask a tax consultant what the rules are ans ask then for some advise?

Several companies do offer a free initial consultation.

But yes, best if to can get the company to pay monthly. 13th salary is a con.
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Old 22.12.2015, 09:48
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Re: Taxes after 13th salary :(

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Had the same concern. My calculation is that with 13th salary (at least for the range I was checking) it was some 500 extra tax paid per annum as compared to if it had been a 12 month contract.

I did look up this at internet and everyone claimed this tax cannot be reclaimed.

Has anyone successfully reclaimed the extra tax for the 13th salary?
Have a look at this document.

http://www.steueramt.zh.ch/dam/finan...ntrag_2011.pdf

This has the possible reasons for "Quellensteuer" corrections outlined.
Out of experience (in kanton Bern), if you ask for this correction, you will have to fill out the complete tax declaration.

Keep in mind that as a result, you may actually have to pay more tax, so better know what you are doing (or pay for advice).
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Old 22.12.2015, 10:55
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Re: Taxes after 13th salary :(

Another warning - if I remember correctly - once they agree and let you submit tax return, you need to do it every year until you leave the canton/country ...
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Old 22.12.2015, 10:58
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Re: Taxes after 13th salary :(

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Another warning - if I remember correctly - once they agree and let you submit tax return, you need to do it every year until you leave the canton/country ...
This is actually not true. Confirmed in practice.
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Old 22.12.2015, 11:01
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Re: Taxes after 13th salary :(

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This is actually not true. Confirmed in practice.
Maybe depends on canton - in Basel, once I submitted my first tax return to get tax benefit of the 3rd pillar, every year I had to submit one. Now I have to do it anyway but even when I had B permit, they required it.
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