Thank you for clarification HashBrown. Now need to start to negotiation heavily.

But even if you're not required to fill in a tax return, I believe you could in theory be liable for these additional taxes.

Akha,

If it helps ... example (Vaud), gross 130k:

Soc Sec (1st pillar) 5.05%
Unemployment 1%
Pension (2nd Pillar) aprox. 4%
Compulsory Medical Insurance (anything between 2-4%)

Tax at source Ded 22.72% (this will be less for you but do not expect huge difference)

Expat allowance (18k per year during 5 years)

Child allowance (after your first 6 months, retrospectively this will be added to your salary but it is taxable, aprox. 0,2 per child)

So... 30% figure looks ok for me, do not budget less!

Hope this helped.

Seriously why are people from different cantons getting involved with this? Each canton has different tax rates.

As Hash said, if you earn under 120k your quellensteuer is seen as your final tax bill and includes your federal, cantonal and community taxes. It is set at the average level for the canton, including usual deductions.

The only thing you haven't included in your calcs is BVG, which I believe is a minimum of 3.5% of anything over around 25k.

I live in canton Zurich, earn more than the the salary you are talking about, pay a hell of a lot more than 3.5% BVG, am single with no children and take home 76% of my salary.

Thank you, blancoi. Tax at source Ded 22.72% seems a bit too much. I guess it's your greedy canton

eyebeebe, thanks a million for clarification. One more quick question , if you dont mind? How do they count bonus taxwise? And if with bonus income is above 120k do we get taxed at source?

As a foreigner on a b permit you are taxed at source regardless of income. Earn under 120 and that is your final bill, earn over 120 and it is a prepayment to be offset against your final bill you receive after filling in a tax return. If you live in a higher tax community such as Zurich city, chances are you will have a further payment to make, dependent upon what deductions you are able to claim for.

The bad news re bonuses is that for quellensteuer purposes it is assumed that you will earn the bonus every month. For example if you normally pay tax on 9025 a month at 4.88% and you get a bonus of 10000, in the month you get paid the bonus you will be taxed at 14.16% on the whole 19025. Overpayment in one month cannot be carried forward to the next. The only way to get it back is to earn over 120 and file your tax return, possibly only to find out that you still owe more tax.

Btw your husband when asked should say he is of no religion when asked by work, so that you don't pay church tax. Nb I believe that if you don't pay the tax you can't use the church for baptisms, marriage, funerals, burials etc.

Bonus month will be a rude shock. The way your withholding tax is calculated each month is based on monthly earnings, then annualised.

So in most months, you'll be taxed on the basis of your income of ~9000CHF per month.

But supposing you got a 15K bonus in December (for a total pay of CHF24K). You'll be taxed at a rate that assumes you earn 288k per year. And the rate of withholding in December will be much higher than you're used to.

And watch your job contract as well. If they pay you a 13th month, you'll get screwed in that month, too. Even worse if your 13th month and bonus are both paid at the same time. Relocation allowances (above the CHF 5K which are tax free) also cause the same problem -- best to spread them across a number of months if your HR department will allow it.

If the bonus takes you over CHF120k per year, you'll be required to file a tax return (which may actually work in your favour, particularly if you've been hit hard by a bonus payment in a single month). As a B-permit holder, you will continue to have your tax withheld, with any balance owing adjusted at the end of the year. You may end up owing, but you can also claim back any tax you've overpaid.

If you earn under 120k you can still submit a tax return if you believe you've paid too much Quellensteuer, e.g. because the tax on your bonus was annualised.

Careful though as you may have been paying less than you ought . . . things like where you live can add to or reduce your tax bill.

Only if you choose to file a tax form, which is usually inadvisable, especially in Zurich.

If you submit a tax return because you've had a pay rise to over 120k, could the tax authorities then investigate your previous year's tax?

I think I am going to get slayed now...Search button hurts already. But I just need to ask. We got offer now, 120k+ 7.5 bonus... and we need to sent 1 child to independant/bilingual school... Here in the UK we have £76k + some bonus, insurances, laptop, mobile, internet . Are we insane to consider this offer, or we can make it work? Please, please be kind to me
Thank you

Not insane, but . . .

If you're in the UK/Switzerland comparison game, 127.5k is approx. £75 at the current exchange rate, but bear in mind that in the recent past the rate has been 2:1 or higher.

Are you sure that your new employer won't supply a laptop and an Internet allowance? I wouldn't necessarily see a work laptop as a benefit anyway!

The biggest things to consider will be accommodation costs and ensuing tax adjustments based on location. Also health insurance can be expensive for a family.

You'll be able to manage nicely on that salary. Your spending power will be decreased compared to the UK, to some extent. Depends how much you pay now for accomodation etc. You'll may find your quality of life improves however. In terms of spending power, I'd equate £76K with about CHF150k. As Gastro Gnome points out - the exchange rates are no longer a good guide.

I know, laptom and internet sounds funny the way i put it. It was more insurances we are concerned about, exactly as you say... Also found here on EF , that 120k is more like £60k buying power? We really want to go, but don't want to just scrape in... And , again, searching EF , looks like only 180K+ can afford to send their child to indie?