Hi Everyone,

Hope that I'm not yelled at with this question!

I got my first paycheck today and tried to understand it. So is a tax at source of 18.09% high for a family size of 4? Basically, I have a wife who is staying home taking care of my two kids.

I just wonder if 18.09% is reasonable for my case! I went to this site http://www.getax.ch/support/ but can't understand any of it. Sorry I just got here and don't know French!

Thanks!

Normally the tax at source is decided based upon your monthly salary. The taxes in Geneva are indeed quite high compared to many other cantons.

are you permie or contract?

I have always been taxed at source here, then have to fill in a tax return at the end of the year and get a sizable rebate

if your a contractor then your agency is probably just playing safe as they are resposible for any tax shortfall should you leave owing the tax man.

If your permie then talk to your hr dept as it sounds pretty high for someone with kids.

Geneva is somewhere in the middle. Even without knowing the OP's religion: Based on the rate he gave, I can pretty exactly tell what he earns and the bottom line is: with 3.5 x the average family income you will not be starving and would be paying WAY more taxes in basically all parts of Europe (with the exception of Monaco and Andorra - not sure about Luxembourg).

http://www.comparis.ch/steuern/quell...lensteuer.aspx

I put the figures through Credit Suisse's calculator, and that tells me the overall rate due is in fact around 27%, once your tax return is in. So don't spend all your net income; there will be a tax bill around the corner!

Hi Treverus... Nope... I am not making 3.5 x the average salary income though. Based on what I am reading in here, I'm making probably around 2x. I know my family is not going to starve even if I made less than my current salary as we know how to budget things... I just wanted to make sure things are right and fair.

Thanks!

Hi NotAllThere,

I use the credit suisse's calculator and looks like the tax amount that I was supposed to pay monthly is not even half of what I am paying now. The monthly tax amount that shows from the calculator is less than the tax amount that I paid for the second half of June (I've been here only for two weeks, so I got paid only for these two weeks so half month of June.)

Thanks!

So how long to permanently employed B-permit holders get taxed at source... is it for the duraiton of the permit, until you get a C?

Maybe you're being taxed as though you've been paid the full monthly amount. Wait until next month's comes through before making any comparisons.

It's either five years or for the duration... if you're an EU citizen then that's five years either way.

are you permie or through an agency? more info is needed otherwise no one can help you.

Until you get a C permit.

Ahhh cool thanks guys, I did read the Swiss tax site and that said similar but someone had in the past insisted "it's only for a year, then you pay tax yourself", so I just wanted to be 100% sure.

Hi bigblue2,

I am a permanent full time with a B permit. I heard that tax return/ratebate takes a long time to process. Is that true? In the US, tax return will take like a month or two, but here like forever, right?

Thanks for sharing the info!

Ahh... so we all should theoretically be filling in a tax rebate form at the end of the year? God, I am scarily clueless when it comes to my finances.

Ok, so I made the assumption that you do not have a religion and came through the comparis website to the conclusion that a person who pays this level of taxes in Geneva is earning around 18.500 CHF a month. If you are earning significantly less than that, you should get your statement checked by your company HR... they should be able to explain it.

BTW: You are talking only about the taxes, not the other social insurances, right?

On a B-Permit,you file a tax return only if you are above the 120 K CHF annual salary.

Ahh, in that case it may not be applicable...

Hi Treverus.... Thanks for the response! Yes... I am not making that much... just a little over the set level for filling tax return. So with 3 dependents (wife and two kids), 18.09% seems high, right? Yes, I am taking about taxes only. There are breakouts of deductions on my pay slip, and the line for "Tax at source" is 18.09%.

I've just emailed my HR guy but have not heard back. Hopefully will hear back on Monday.

Thanks!

yes it can take a couple of years to get the tax back, more if you query it.

speak to your hr dept, make sure they have all your details correct and your getting all your tax allowances

Hi, just to add, I would thoroughly recommend an English speaking accountant to do your tax return when you are taxed at source - they know stuff we dont like making deductions for house insurance premiums, house maintenance, work clothing, travel, lunches etc etc and it all adds up - also explaining how you can "invest" in a 3rd Pillar account and get a good percentage of the premiums back via your return. I have been here 5 years now and each year have received a sizeable rebate which makes what I pay the accountant very worthwhile indeed. Will gladly pass on his details if you'd like and he is convenient to you - in Nyon VD. Rebates though, can take a whiler - I just last week got mine from the 2008 return, but normally it seems to coincide with the issuing of the return, so when you receive your 2010 return roughly around the same time you should get your 2009 rebate - or at least thats how it has worked for me so far - but I am sure it differs town to town, canton to canton...