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Old 17.02.2010, 14:57
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Tax allowances - Expat allowance

After reading through these forums, I became aware of an 'Expat Tax Allowance', which potentially entitles you to an allowable deduction for tax of CHF 18,000 per year (CHF 1,500 per month).

THe link that someone posted provides some details on eligibility

http://www.promfr.ch/upload/taxation-individuals.pdf


I am working through an agency (Swiss, and also strictly my employer), who have been totally useless - didn't want to know as soon as the ink dried on the contract, so I've been doing my research (forums been v useful), and I've persuaded my agency that this allowance does exist and I am eligible.

The agency have been their useful helpful selves..... and emailed me an address for the Kanton Basel-Stadt Quellensteuer, telling me to write a letter to the taxman explaining my justification for receiving this allowance. I assume this is something that I will have to proceed with (no idea if the agency should really take this up or not?).


Has anyone done similar (Basel or otherwise), and can give a few tips? What info are they after, do they need proof of these expenses etc.

I believe the CHF 1,500 is a flat rate, and that's all I'm looking to claim -which just about covers the costs I've incurred/will have to incur in UK (the contract happened v quickly, so still got commitments back home etc)


Many thanks.
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Old 17.02.2010, 17:53
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Re: Tax allowances - Expat allowance

Would really appreciate any guidance on the above - was hoping to keep any time with an advisor to a minimum after realising the hourly rate charged!
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Old 17.02.2010, 17:59
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Re: Tax allowances - Expat allowance

My agency set me up with a accountant type firm who handle my payslips -taxes etc.

on my payslips it definetly shows the 1,500 expenses allowance.

Dont know much more than that though.
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Old 17.02.2010, 18:02
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Re: Tax allowances - Expat allowance

They should be able to make the allowance without your applying to the tax office. My agency does.

Whether you are eligible for the full amount or at all is then up to the taxman when you fill out your tax form.
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Old 17.02.2010, 18:19
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Re: Tax allowances - Expat allowance

OK, thanks - Judging from the comments, the agency should be doing a bit more for their buck. The fact that they had never heard of it is a worry (this is meant to be an international agency with a decent reputation....!).

As I am only on an initial 6 month contract, and don't reach the 120k a year threshold required to file my own tax return, it could be that there are issues with the agency making the deduction at source for this....?
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Old 18.02.2010, 12:09
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Re: Tax allowances - Expat allowance

I spoke to a tax advisor and was told that the agency could deduct the CHF 1500 a month from gross salary and pay it as a tax-free allowance if the covenants are met to receive it (which they are). There is no need yet to write to the authorities to claim.

The agency, who appear to be experts overnight (considering that they didn't know about this until I mentioned it to them yesterday), are adamant that I need to write to the authorities giving the reasons/justification, which will take weeks/months. I imagine it's just their way of avoiding more hassle /work.


Wish I could wash my hands of them, but I suppose they have you over a barrel. Won't be making the same mistake twice.
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