Search "tax return"... tells you all you'll ever need to know...

Quickly though:
Earn more than 120K, you fill in a tax return
Earn less, you can claim a source tax adjustment

Searching one of the many threads already on the subject will enlighten you

the source tax rate is based on your income that month. Dont be sure about getting refunds. the tax rate is based on average rates in the canton and could be less than what you have to pay if you are declaring

for those seeking refunds when they've been hit hard in one month should look at this post: Tax forms, reclaiming tax at source

Since I started this thread ages ago, I thought I'd update it. I went for a tax return for 2006 (although I did not have to) to reclaim some tax that I paid due to relocation costs etc. being refunded in one big lump.

I cannot believe it, the tax calculations are wrong! Well, of course I am a total newbie but they managed to add 12k to my Netto II income, which is totally strange to me, as my global income outside CH is 0, and my salary tax overview for 2006 really does state 12k less. Anyone have any idea if you can object to their assessment, and if it is worth it or if they can retaliate? (And if adding amounts under income listed under 2.21, einkuenfte aus unselbstaendiger haupt.. nettolohn II, is normal?). (Moneywise it is worth it for me as the difference is 2k).

By the way, my accountant argued for the expat allowance, but they refused, even though I am on a 2 year fixed contract.

Here I am, posting away:

Question 1:
I checked the Bern Kanton "Steuertabellen für die Quellensteuer, Ausgabe 2008" at http://www.fin.be.ch/site/sv-steuerv...llensteuer.htm
to figure out whether my husband's Quellensteuer is accurate. The table is based on Brutto-Monnatseinkommen, which as I understand is the base monthly salary (Monatsgehalt), before any deductions (please correct me if I am wrong). There is a CHF 25 difference between what the table says (married, the only earner, no kids, no church taxes) and what was withheld at the source (i.e., his Quellensteuerabzug is CHF 25 more than the one indicated in the table). How can this be accounted for?

Question 2:
Somewhere in the threads here, it was mentioned that Quellensteuer is calculated on the net salary (after all compulsory deductions). This seems to contradict the above referenced table. Or I am missing something here?

Question 3:
(quoting Richard): "Calculating your taxable income is straightforward for Quellensteuer - you take the monthly income plus the PK contributions": is this to calculate Quellensteuer only if you want to file a tax return? And why do the PK contributions (Pensionkasse???) factor in for Quellensteuer? OR does this mean that Brutto-Monnatseinkommen from the table referenced above is Monatsgehalt + Pensionkasse? It seems weird...

Question 4:
My husband had two UVG deductions: (1) UVG-NBU-Arbeitnehmerbeitrag bis Fr. 10500 at 0.357%, and (2) UVG-Zusatzversicherung Arbeitnehmerbeitrag at 0.017%. He is earning less than 10500 per month, so I am not quite sure what this second "additional" one is.

My husband is a post-doc at the University of Bern, non-EU permit B holder, if this matters for Quellensteuer calculation.

Thanks in advance!

1. The figure is the % in the middle of the band.
Does he earn ...25 or ...75?

The higher the band, the higher the diff.
Or rounding?

2. No. Gross. Always.
It approximates what "normal" tax is (including deductions).

3. Nah, just Brutto.
I dunno what PK is, unless it's bonus or other stuff added to salary.

4. Not sure, sorry.

His is very close to the lowest figure within the band. The Quellensteuer withdrawn in his case actually belongs to the band of a salary that is CHF 200 higher.

He has already emailed HR to inquire; I wonder what they will say...

Thanks for the clarification of the other two points!

We were also hoping to be eligible for the expat allowance, but it seems that one has to have lived less than 183 days in Switzerland in the tax year to qualify, at least in Kanton Bern (unless of course I am misreading):

Section 5.2 Im Quellensteuerverfahren (http://www.taxinfo.sv.fin.be.ch/site/expatriates#im-quellensteuerverfahren): "Expatriates unterstehen der ordentlichen Besteuerung, soweit sie sich während eines Kalenderjahres mehr als 183 Tage in der Schweiz aufhalten (vgl. Art. 15 OEDC-Musterabkommen bzw. entsprechende DBA). Besondere Berufskosten gemäss Expatriate-Verordnung des Bundes bzw. MB 8."

This sentence is, however, not included in Merkblatt 8, referenced above as MB 8 (attached as a pdf). Very strange

Could this be the reason why muze7 was refused this allowance?

Does this mean that if we arrived in die Schweiz May 7, 2008, we won't be considered "expats" for the purposes of special occupational costs (Besondere Berufskosten) allowances/ deductions? These seem quite nice in Kanton Bern and include
- relocation costs,
- apartment rental costs if one owns an apartment in one's country OR CHF 1'500 for the first two months in die Schweiz,
- and costs of the kids attending a private foreign-language speaking school.

Has anyone succeeding in claiming this expat allowance having been in the country more than 183 days during the tax year?

Attached Files

Expats_Deductible_Occupational_Costs_German.pdf (47.9 KB, 44 views)

Hi Richard,

This is an interesting remark from you I found in the forums.
All the while I was thinking that whatever they have written on their websites (even in FAQ) is true and can't be challenged. Here you mean to say that they are playing with words (for eg. using in principe (theory) otherwise it can be challenged) Here you also refer to LAW - can you make some reference to it?
Quite thankful for this interesting post!

Hello all

Quick question...

If somebody gets over CHF 120k a year in Zurich, is on a B permit, pays Quellensteuer each month, now has to fill in a Steuererklärung for 2007 (tax declaration), correct?

1) Does your tax get adjusted according to how much you have already paid in Quellensteuer for the year (2007) with the taxes they calculated you are liable to from the tax declaration? I.e. if you've paid CHF 13k in Quellensteuer for the year 2007, and from the tax declaration it is calculated that you have to pay CHF 12k, then do you get a CHF 1000 rebate?

2) What is Bundessteuer? Is this within Quellensteuer? Does this mean that now that you are over CHF 120 a year you will have to pay an additional Bundessteuer?

I too have the same question of galinas regarding expat allowance.

My husband came to Switzerland in Dec 2007, where as we (wife and son) came to Switzerland in May 2008. But we never got expat allowance (mentioned as CHF 1500 somewhere in the forum).

Last November, we got upgraded from L-permit to B-permit. Any idea, how to get it and what proofs need to be submitted. Any help is appreciated.

Thanks.

It will depend entirely on his contract, i.e. whether his work is designated as a temporary assignment in the country.

Thanks Gastro Gnome.

He is working in Software field in Basel. He first came for 6 months contract and later extended for 2 years (not continously but like 1 year first and again 1 year). He is not working for a direct Switzerland company. He works for an Indian company and here at client location so far.

Was he working for the same Indian company before he came here?

And is he working freelance or is it a permanent role?

Yes he is working for the same Indian company at India, before coming here and he is a permanent employee of that Indian company.

It sounds like in theory he should be eligible for expat status. Sometimes though this will depend on the exact wording of the contract.

I'd suggest initially getting the firm's HR department involved, making them aware of the possible benefit.