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-   -   Assymetrical interest on taxes (https://www.englishforum.ch/complaints-corner/296113-assymetrical-interest-taxes.html)

Phil_MCR 13.01.2020 11:37

Assymetrical interest on taxes
 
Actually, this was a rant I wanted to make from last years tax prep time.

If you pay your tax in advance, you get 0.2% interest. If you pay late you get 6% interest penalty.

I think it would be more fair to have this symmetrical or at least reduce the spread to <0.5%.

aSwissInTheUS 13.01.2020 12:02

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by Phil_MCR (Post 3136486)
Actually, this was a rant I wanted to make from last years tax prep time.

If you pay your tax in advance, you get 0.2% interest. If you pay late you get 6% interest penalty.

It is symmetric. And the it is only 0.1% and 3.5% respectively.
https://www.steuerverwaltung.bs.ch/s...erzinsung.html
https://www.steuerverwaltung.bs.ch/s...ungsfrist.html

In Basel taxes for the tax year 20XY are due on 31. May 20XY+1.
Anything you pay before that day is awarded with 0.1% interest.
Anything you paid too much after that day is awarded with 3.5%, anything which you did not pay after that day is penalized with 3.5%.


The rules for canton Zurich are a bit different:
In Zurich the taxes for year 20XY are due on 30. September 20XY.
Anything paid before that date is awarded with 0.25% interest.
Anything paid too much after this date is awarded with 0.25% interest.
Anything not paid after this date is penalized with 0.25% interest.
At some date you will get a final bill. If not all taxes have been paid you must do so within 30 days. Anything paid later is penalized with 4.5%
https://www.zh.ch/internet/de/aktuel...reduziert.html

Phil_MCR 13.01.2020 14:24

Re: Assymetrical interest on taxes
 
I'm not in Basel-Stadt.

https://www.allschwil.ch/de/verwaltu...tail.php?i=444

aSwissInTheUS 13.01.2020 15:33

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by Phil_MCR (Post 3136567)
I'm not in Basel-Stadt.

Oh, a Landei. Then please state Basel-Land in your profile :rolleyes: In the end New Jersey City is also not New York ;)

Yes, Basel-Land has asymmetric interest rates.

st2lemans 13.01.2020 15:34

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by aSwissInTheUS (Post 3136581)
In the end New Jersey City is also not New York ;)

Nor does New Jersey City even exist! :eek:

Tom

Phil_MCR 13.01.2020 15:39

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by aSwissInTheUS (Post 3136581)
Oh, a Landei. Then please state Basel-Land in your profile :rolleyes: In the end New Jersey City is also not New York ;)

Yes, Basel-Land has asymmetric interest rates.

But my location is currently Basel-Stadt. It's just not where my tax residence is ;)

aSwissInTheUS 13.01.2020 16:47

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by st2lemans (Post 3136582)
Nor does New Jersey City even exist! :eek:

New York City but Jersey City :confused: :eek:

eyebeebe 13.01.2020 17:52

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by aSwissInTheUS (Post 3136503)
It is symmetric. And the it is only 0.1% and 3.5% respectively.
https://www.steuerverwaltung.bs.ch/s...erzinsung.html
https://www.steuerverwaltung.bs.ch/s...ungsfrist.html

In Basel taxes for the tax year 20XY are due on 31. May 20XY+1.
Anything you pay before that day is awarded with 0.1% interest.
Anything you paid too much after that day is awarded with 3.5%, anything which you did not pay after that day is penalized with 3.5%.


The rules for canton Zurich are a bit different:
In Zurich the taxes for year 20XY are due on 30. September 20XY.
Anything paid before that date is awarded with 0.25% interest.
Anything paid too much after this date is awarded with 0.25% interest.
Anything not paid after this date is penalized with 0.25% interest.
At some date you will get a final bill. If not all taxes have been paid you must do so within 30 days. Anything paid later is penalized with 4.5%
https://www.zh.ch/internet/de/aktuel...reduziert.html

And in Schwyz if you pay more than the amount they propose, they send it back to you. Presumably so they donít have to pay you the interest. It can be quite annoying when you know that your tax bill is going to be more than they estimate it to be.

Phil_MCR 13.01.2020 17:53

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by eyebeebe (Post 3136616)
And in Schwyz if you pay more than the amount they propose, they send it back to you. Presumably so they donít have to pay you the interest. It can be quite annoying when you know that your tax bill is going to be more than they estimate it to be.

Do they still charge you interest on the shortfall?

eyebeebe 13.01.2020 20:27

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by Phil_MCR (Post 3136617)
Do they still charge you interest on the shortfall?

I canít remember to be honest. That would be pretty unfair. I think they charge you interest if you choose to pay in instalments (one in Oct, one in Dec, one the following Feb), rather than settling what they propose by the 30 June. Not something I care too much about tbh given how low the tax is here (low double digits as a percentage of total income!)

aSwissInTheUS 13.01.2020 21:03

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by eyebeebe (Post 3136616)
And in Schwyz if you pay more than the amount they propose, they send it back to you. Presumably so they donít have to pay you the interest. It can be quite annoying when you know that your tax bill is going to be more than they estimate it to be.

Addendum: Same in canton ZH if it is for the Federal tax.

roegner 13.01.2020 21:07

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by aSwissInTheUS (Post 3136695)
Addendum: Same in canton ZH if it is for the Federal tax.

Also on Gemeinde/Kanton tax in ZH..... Happened to me last year

aSwissInTheUS 13.01.2020 21:13

Re: Assymetrical interest on taxes
 
Quote:

Originally Posted by roegner (Post 3136698)
Also on Gemeinde/Kanton tax in ZH..... Happened to me last year

Never happened. But I did never hugely overpay. Approx a thousand or two.


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