Hi I was talking to some friends here who are Swiss nationals and apparently, at the end of the year they get a big form sent to them where they have to pay 1 big fee for TAX

Am I right in saying that this won't happen to me? I'm British, been is Switzerland for 9 months now and I'm under the impression if you are an expat it is taken monthly out of your salary?

Which one is it exactly? I have a few things deducted in my salary, which one is the tax one?

Thanks

AHV-Abzug = 292
alv-abzug = 58
nbu-abzug = 35
nbu-zusatz i = 7.40
krankentaggeldv. = 15.80
qst-abzug automatisch = 733
pk-beitrag an = 230

Montly deductions...

Unless you are comfortable with people knowing what you earn, you may wish to remove the numbers.

Qst-abzug is your withholding tax paid at source. as you earn under 120k there will be no further tax due, unless you have a bonus or other sources of income to take you over.

What do you mean by - withholding tax paid at source? Thanks

Is that for everyone under 120 or only expats like myself?

Withholding tax at source = income tax paid at source = Quellensteuer (sp?) = qst above in your post.

You should be fine.

Usually it applies to people who earn less than 120k and are on B permits.

If and when you get a C-permit you will need to do tax returns.

It's paid by anyone who doesn't have a c permit or citizenship. If you earn over 120 and don't have the above, you have to make a tax declaration like the Swiss do at year end. The withholding tax is like a payment on account towards it for them. If you earn under 120 and don't have the c permit the withholding tax effectively is your income tax.

Technically you should do a tax return even if you are paying at income tax at source. This is because Swiss tax covers ALL overseas assets as well as the "wealth tax" (i.e. if you have a lot of cash you get taxed on this too).

Sometimes they get the numbers wrong then send you the bill a few years later... Not nice...

The rule of thumb is that if you are passing through CH (i.e. posted here for a couple of years) you don't need to worry. But if you are going to be here a while, play by the book and declare all now.

Maybe someone is in the same situation:

I will receive really close to 120k, but how I'm a B permit holder I will be taxed at the source, but I think I'm entitled to receive also the Kinderzulage what would make my yearly earns go above this limit. Would I still be taxed at the source at this situation?

thanks

As I understand, Kinderzulage is not considered for tax calculation.

Doesn't matter what you earn. B permit = tax at source.
Difference is, >120k you will be asked to fill in a tax return. <120k you will not be asked to fill in a tax return.

And I learnt all this information where? From this forum!

Also - if you are a home owner and B permit holder in Kanton SZ you do not pay quellensteuer.

Not correct. I, for example, never paid tax at source when I had my B permit.

I'm afraid it is. It is not included in AHV calculations but it is taxed.

Which is probably because you owned a house here, which is the typical reason for not paying along with being married to a Swiss or C permit holder.

I was required to file a return in Zürich with less than 120K income.

Married to Swiss = tax papers at the end of the year.

If you earn under 120k you can ask for tax papers.

Reasons they do the withholding tax are:

1) Stop foreigners legging it without paying tax
2) Assists foreigners by not having to fill out the complicated tax papers

We are one of the rare exceptions.

My husband and I are both Americans and worked from day one here in Switzerland. After 3 months of paying tax at source the town called up HR and told them to stop. HR was very surprised, but complied. We did not own any property at the time.

I did wonder if it would make any difference to me at all if I asked to change to non-Quellensteuer. Of course, I don't think this is possible until I (possibly) go for a C permit. I earn over 120k, so have to fill out a return anyway. If I didn't pay Quellensteuer, the total amount of tax would be the same . . . the only difference would be a bit of flexibility . . . I put the cash to work and pay with savings or the thirteenth month payment.

Am I missing some other advantage?

As far as i am concerned. i earn under 120k and i have a B permit and taxed at source. I know people i work with who are also on b permits and earn over 120k who have to fill out tax forms. They don't have any property here except renting.

also i know is that the swiss get 13 month payments from the company. When they do the tax declaration usually pay about 1 or 1.5 of thier gross monthly salary. so usually the 13 month pays most of thier tax bill.

Being married to a Swiss will mean you avoid Quellensteurer (which is basically the same as the UK's PAYE (pay as you earn)).

From what I can make out paying Quellensteuer puts one at quite a disadvantage, as so many things can be claimed on the Swiss tax form - I even clain CHF500 for filling it in...