Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 20.05.2011, 13:31
Senior Member
 
Join Date: May 2011
Location: Zurich
Posts: 481
Groaned at 1 Time in 1 Post
Thanked 267 Times in 168 Posts
gourmet is considered knowledgeablegourmet is considered knowledgeablegourmet is considered knowledgeable
Tax question

Hi there,

I am excited to be moving to Zurich in July to take up a new position. This forum is a great help in finding information. I got a question that I am not sure whether has been asked on here before. If it has, please point me to there.

I will be on probation in the first few months of joining the company and the relocation package will include the usual ticket, hotel etc. I would like to wait until I am sure that all is working out before I lease a property as I understand it can be quite problematic if you do not speak German (which I don't), plus the long lease (i.e. 1yr plus). The company will provide hotel accommodation up to 3 months. So if I stay in the hotel for that duration, how will my tax be calculated please?
Reply With Quote
  #2  
Old 20.05.2011, 17:14
miniMia's Avatar
Forum Legend
 
Join Date: Apr 2007
Location: romandie
Posts: 9,971
Groaned at 101 Times in 92 Posts
Thanked 9,106 Times in 4,522 Posts
miniMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond repute
Re: Tax question

If you make under the threshold which I think is 120K, it doesn't matter as you will most likely pay tax at source and this is calculated on an average cantonal rate. So the rate will be the same anywhere in the canton.

If you make over 120k (or whatever the threshold is) then I don't know. Someone else might be able to give you the answer.
Reply With Quote
  #3  
Old 20.05.2011, 17:30
Corbets's Avatar
Forum Legend
 
Join Date: Mar 2007
Location: DK - previously Zug
Posts: 3,321
Groaned at 168 Times in 122 Posts
Thanked 6,707 Times in 2,237 Posts
Corbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond repute
Re: Tax question

Quote:
View Post
If you make under the threshold which I think is 120K, it doesn't matter as you will most likely pay tax at source and this is calculated on an average cantonal rate. So the rate will be the same anywhere in the canton.

If you make over 120k (or whatever the threshold is) then I don't know. Someone else might be able to give you the answer.
The type of accommodation makes no difference (i.e. hotel, apartment, whatever) - only the location matters. However, when you file your taxes, you will file based on your residence as of 31 December, so probably it will be a non-issue.
Reply With Quote
  #4  
Old 20.05.2011, 18:01
Senior Member
 
Join Date: May 2011
Location: Zurich
Posts: 481
Groaned at 1 Time in 1 Post
Thanked 267 Times in 168 Posts
gourmet is considered knowledgeablegourmet is considered knowledgeablegourmet is considered knowledgeable
Re: Tax question

As I started in July, the tax year here is end of Calendar year? If so, this year I will be under threshold and far as I know, I will be paying at source. In that case, at end of July when I get my first pay packet, I will be in hotel, so does that mean I will pay no tax and catch up at end of year when I have my own place?
Reply With Quote
  #5  
Old 20.05.2011, 18:20
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,952
Groaned at 294 Times in 198 Posts
Thanked 19,009 Times in 7,996 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Tax question

depends on the company administering the payroll. dont be too surprised if the entire value of the accomodation is treated as taxable income in december and you get an yastronimical tax bill. best thing is to make sure the tax on relocation is also bourne by the company in your contract.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
  #6  
Old 20.05.2011, 18:33
Senior Member
 
Join Date: May 2011
Location: Zurich
Posts: 481
Groaned at 1 Time in 1 Post
Thanked 267 Times in 168 Posts
gourmet is considered knowledgeablegourmet is considered knowledgeablegourmet is considered knowledgeable
Re: Tax question

Quote:
View Post
the entire value of the accomodation is treated as taxable income in december and you get an yastronimical tax bill. best thing is to make sure the tax on relocation is also bourne by the company in your contract.
even though the company is paying the hotel directly? I need to check my contract but I find things very fustrating atm as no informaiton is coming my way - much. I can ask questions but no answers are coming sometime up to a week and even got told off when asked what is classified as relocation cost. Being a planner, that is causing a lot of anguish when I know I could have sorted it all out if it is left up to me.

There are quite a lot of expat in the company and department as well but I am unable to chat with them on their experience as they are busy. So I am flying blind here.
Reply With Quote
  #7  
Old 21.05.2011, 00:11
swissbob
 
Posts: n/a
Re: Tax question

Quote:
View Post
even though the company is paying the hotel directly?
Possibly not if you are on a special expat contract which allows certain fixed expenses. Otherwise, yes, if free accommodation is part of your remuneration package then you will be taxed on it.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Quick question on tax at source and tax on bonus AJJ Finance/banking/taxation 18 28.04.2011 13:24
Tax Question nathanjrussell Finance/banking/taxation 10 25.02.2010 18:47
Tax question Derekbeggs Employment 0 02.05.2009 11:38
Tax question Beano Finance/banking/taxation 1 28.04.2007 07:06
Can anyone help with a UK tax question? TonyBhoy Finance/banking/taxation 11 05.04.2007 21:51


All times are GMT +2. The time now is 20:59.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0