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Old 08.02.2017, 13:04
krax krax is offline
Join Date: Apr 2016
Location: Zurich
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Calculation of Quellensteuer/tax at source with deductions

At least here in Kanton ZH, if you pay quellensteuer your tax rate is weirdly decided by your income each MONTH, and not by your yearly income. So if you are paid a 13 salary in December you will end up paying more taxes than you would have if you were paid in 12 equal monthly instalments, due to progressive taxation (for me the difference is a few hundred CHF). According to the tax office, you have no right to a tax refund of the difference.

But how does this work if you claim deductions for instance for child care? If the tax rate was based on your gross yearly income the formula is clear: You calculate gross yearly income - deducted expenses and then calculate how much tax you would have paid if this was your gross yearly income without any deductions. The difference is your refund.

But if your tax rate is based on your monthly salary? Is the expense deducted from the salary of the month it was incurred?
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