Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #1  
Old 16.09.2016, 11:56
Newbie
 
Join Date: Sep 2016
Location: London
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
michalp has no particular reputation at present
witholding tax

Hi,
When I'm doing calculation of my net salary I often get that tickbox with withholding tax.


Assuming the only income will be from salary in Zurich and I'm Polish national living in London... I mean planning to move permanently to Switzerland.


Is Withholding tax applicable for all people who are working in Switzerland (immigrants) ?
Reply With Quote
  #2  
Old 16.09.2016, 12:00
Sbrinz's Avatar
Forum Legend
 
Join Date: Oct 2011
Location: Murten - Morat
Posts: 10,961
Groaned at 542 Times in 342 Posts
Thanked 10,567 Times in 5,406 Posts
Sbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond repute
Re: witholding tax

Quote:
View Post
Hi, is Withholding tax applicable for all people who are working in Switzerland (immigrants) ?
Yes, for at least the first 5 years, employees are taxed at source. Just as people in the UK are. The rate is the average for the Canton the employee is living in.

Usually after 5 years the employee has to submit a tax return every January. Then he receives tax demands from the state, the canton, & the town where he lives. He might pay more tax in total, or it might be less than his previous with-holding tax .

Welcome to the Forum.
Reply With Quote
  #3  
Old 16.09.2016, 12:56
Newbie
 
Join Date: Sep 2016
Location: London
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
michalp has no particular reputation at present
Re: witholding tax

Ah.. thank you.
One more question

My contract will be in Zurich in the centre but Im thinking about living in Zug.. will my tax be paid based on taxes from Zurich as i will be working there?
Reply With Quote
  #4  
Old 16.09.2016, 13:36
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,724
Groaned at 209 Times in 181 Posts
Thanked 11,034 Times in 6,259 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: witholding tax

Quote:
View Post
Ah.. thank you.

One more question



My contract will be in Zurich in the centre but Im thinking about living in Zug.. will my tax be paid based on taxes from Zurich as i will be working there?


If you earn over 10k a month you will end up being taxed as a normal person where you live rather than average withholding tax rate
Reply With Quote
  #5  
Old 16.09.2016, 13:43
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 589
Groaned at 37 Times in 29 Posts
Thanked 348 Times in 222 Posts
ivank has no particular reputation at present
Re: witholding tax

Quote:
View Post
My contract will be in Zurich in the centre but Im thinking about living in Zug.. will my tax be paid based on taxes from Zurich as i will be working there?
You'll be taxed by your canton of residence, i.e. Zug
Reply With Quote
  #6  
Old 16.09.2016, 16:50
eyebeebe's Avatar
Forum Veteran
 
Join Date: May 2009
Location: Pfäffikon SZ
Posts: 1,089
Groaned at 11 Times in 10 Posts
Thanked 938 Times in 469 Posts
eyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond repute
Re: witholding tax

Quote:
View Post
If you earn over 10k a month you will end up being taxed as a normal person where you live rather than average withholding tax rate
For clarity - if you earn over 120k pa you will have to complete a tax return, but you will still pay withholding tax until you have a c-permit/marry a Swiss. Your payments are credited against your tax return and you pay or receive the diffeeence.
Reply With Quote
  #7  
Old 16.09.2016, 17:15
Newbie 1st class
 
Join Date: Apr 2012
Location: Zurich
Posts: 12
Groaned at 5 Times in 3 Posts
Thanked 4 Times in 2 Posts
vicks9822 has become a little unpopularvicks9822 has become a little unpopular
Re: witholding tax

Point to note that once you have started declaring your taxes, you will carry on declaring it forever even if your salary goes less than 120K CHF.
Reply With Quote
This user would like to thank vicks9822 for this useful post:
  #8  
Old 16.09.2016, 17:30
roegner's Avatar
Forum Legend
 
Join Date: May 2011
Location: Zurich
Posts: 3,036
Groaned at 87 Times in 65 Posts
Thanked 3,060 Times in 1,567 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: witholding tax

Quote:
View Post
Point to note that once you have started declaring your taxes, you will carry on declaring it forever even if your salary goes less than 120K CHF.


But then, if you have to declare, there is no way around it
Reply With Quote
  #9  
Old 17.09.2016, 03:56
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,724
Groaned at 209 Times in 181 Posts
Thanked 11,034 Times in 6,259 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: witholding tax

Quote:
View Post
For clarity - if you earn over 120k pa you will have to complete a tax return, but you will still pay withholding tax until you have a c-permit/marry a Swiss. Your payments are credited against your tax return and you pay or receive the diffeeence.
Working for 1 month & earning 10001, will require a tax return. Stating 120k a year confuses new residents as the assume if the earn 115,000 in 11 months they will be exempt.


Sent from my iPad using Tapatalk HD
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #10  
Old 17.09.2016, 04:37
Wallabies's Avatar
Forum Legend
 
Join Date: Sep 2011
Location: Winterthur
Posts: 3,199
Groaned at 317 Times in 182 Posts
Thanked 3,292 Times in 1,564 Posts
Wallabies has a reputation beyond reputeWallabies has a reputation beyond reputeWallabies has a reputation beyond reputeWallabies has a reputation beyond repute
Re: witholding tax

Quote:
View Post
For clarity - if you earn over 120k pa you will have to complete a tax return, but you will still pay withholding tax until you have a c-permit/marry a Swiss. Your payments are credited against your tax return and you pay or receive the diffeeence.
Moving to C Permit and not paying withholding tax is a definite step backwards as having tax automatically deducted is so much more practical
Reply With Quote
This user would like to thank Wallabies for this useful post:
  #11  
Old 17.09.2016, 10:58
roegner's Avatar
Forum Legend
 
Join Date: May 2011
Location: Zurich
Posts: 3,036
Groaned at 87 Times in 65 Posts
Thanked 3,060 Times in 1,567 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: witholding tax

Quote:
View Post
Moving to C Permit and not paying withholding tax is a definite step backwards as having tax automatically deducted is so much more practical
I don´t mind, gives me the chance to skip one month and pay more the next. Normally I just try and get it done with in the first half year.
Reply With Quote
  #12  
Old 20.09.2016, 20:01
eyebeebe's Avatar
Forum Veteran
 
Join Date: May 2009
Location: Pfäffikon SZ
Posts: 1,089
Groaned at 11 Times in 10 Posts
Thanked 938 Times in 469 Posts
eyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond repute
Re: witholding tax

Quote:
View Post
Working for 1 month & earning 10001, will require a tax return. Stating 120k a year confuses new residents as the assume if the earn 115,000 in 11 months they will be exempt.


Sent from my iPad using Tapatalk HD
Do you have a link to that?
I earned over 10k per month in the first month I lived here (August 2009), but under 120k for the year of 2009. I was not allowed to fill in a tax return despite wanting to. In fact they were very arsey about me trying to claim education expenses that year (to the point I gave up).
Reply With Quote
  #13  
Old 20.09.2016, 21:25
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 589
Groaned at 37 Times in 29 Posts
Thanked 348 Times in 222 Posts
ivank has no particular reputation at present
Re: witholding tax

The rule is not whether you've earned 10k+ in any single month or not. Instead they calculate pro rata what would your yearly income be had you stayed the whole year here. They take the average of your regular monthly incomes and use that for the missing months. The total deduced in such way yearly income is used to determine the tax rate, which is applied to your actual income. The concept is called "unterjährige Steuerpflicht".

Here's a link with details for ZH: https://www.steueramt.zh.ch/internet...pdf/24-101.pdf
Reply With Quote
This user would like to thank ivank for this useful post:
  #14  
Old 20.09.2016, 21:25
Member
 
Join Date: Apr 2015
Location: Zürich
Posts: 128
Groaned at 25 Times in 14 Posts
Thanked 103 Times in 56 Posts
peternieder has earned some respectpeternieder has earned some respect
Re: witholding tax

Quote:
View Post
If you earn over 10k a month you will end up being taxed as a normal person where you live rather than average withholding tax rate
No, I think you will still pay withholding tax as long as you are on a B permit.

You will fill a tax return if you earn over CHF120k in one year. You still pay withholding tax however.
Reply With Quote
  #15  
Old 20.09.2016, 21:32
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 589
Groaned at 37 Times in 29 Posts
Thanked 348 Times in 222 Posts
ivank has no particular reputation at present
Re: witholding tax

Quote:
View Post
No, I think you will still pay withholding tax as long as you are on a B permit.
Well, nobody here claimed that you would stop paying tax at source.

You'll pay it on B. If you're allowed to do tax return and get tax-assessed in the normal way, tax at source will be considered then as a prepayment towards your final taxes and you'll either get a refund or have to pay even more eventually, with interest. If you don't get to file tax return, tax at source is your final tax liability for the year.
Reply With Quote
This user would like to thank ivank for this useful post:
  #16  
Old 20.09.2016, 21:39
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 589
Groaned at 37 Times in 29 Posts
Thanked 348 Times in 222 Posts
ivank has no particular reputation at present
Re: witholding tax

Note even people who don't pay tax at source are sent bills to prepay their probable taxes, based on previous years' assessements . They however pay the bills themselves, instead of the amount being just deducted by employer, and get to choose when and how much to prepay
Reply With Quote
  #17  
Old 21.09.2016, 11:04
Newbie 1st class
 
Join Date: Apr 2008
Location: Geneva
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
atm82 has no particular reputation at present
Re: witholding tax

Note, in Geneva at least, You will likely stop paying tax at source after doing a full tax return while on B Permit. (personal experience). I have been here 1.5yrs, had to file a tax return and currently get my salary Gross. And i have not been sent any 'Bills' yet (as i guess the have not processed my first year return).

Also there are different rules for federal tax and cantonal tax (again Geneva specific?). I understand that one can be paid lump sum on final bill, the other is meant (mandatory?) to be paid in prepayments based on previous years assessment.
Reply With Quote
  #18  
Old 21.09.2016, 14:35
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 589
Groaned at 37 Times in 29 Posts
Thanked 348 Times in 222 Posts
ivank has no particular reputation at present
Re: witholding tax

The bills will probably come sooner or later. Or you can proactively ask for them. If you pay nothing at all and wait 2 years for the final bill to come, you'll have to pay interest on itso whole amount. 1.5% p.a in ZH, possibly different elsewhere.
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
banking laws witholding tax paulo Finance/banking/taxation 1 22.09.2014 17:39
Witholding tax, Year tax return and 3a pillar refund Dropped Finance/banking/taxation 9 19.05.2013 17:21
witholding tax UK/Switzerland Halulo Finance/banking/taxation 3 21.01.2013 09:30
Witholding Tax/Taxes kifissiacat Finance/banking/taxation 10 14.11.2012 11:17
Reclaiming Foreign Witholding Tax thodge78 Finance/banking/taxation 1 19.07.2011 20:13


All times are GMT +2. The time now is 18:42.


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