Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #1  
Old 26.08.2007, 20:01
BeastOfBodmin's Avatar
Forum Veteran
 
Join Date: Oct 2006
Location: Zürich
Posts: 842
Groaned at 3 Times in 2 Posts
Thanked 320 Times in 215 Posts
BeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond repute
What are "Withholding Tax" and "Wealth Tax"?

Having just completed my first ever Tax Return - well, I paid eine Treuhand to do it for me - I thought I'd try to understand what Federal Withholding Tax and Wealth Tax are.

My logic circuits tend to shut down whenever I try to understand anything to do with tax because I know it's not a system that's supposed to make sense. More than often the choice of terms is misleading. z. B. "Value Added Tax". How, precisely, does taxing certain goods "add value"? Pure Orwellian doublethink.

1. Federal Withholding Tax. It appears to be nothing more than a 35% tax on interest earned or lottery winnings. Is this so? Why is it called "Withholding Tax"? Who is withholding what from whom?

2. Wealth Tax. "Living and Working in Switzerland" says it's a cantonal tax levied on total wealth and is between 0.25% and 1%, depending on the canton. Clear enough.

But how are they applied?

Suppose I was paid CHF 250K last year, and I have a house worth CHF 1.1M and a bank balance of CHF 100K as at 31.12.2006[1], where it has been earning interest at the rubbish Swiss rates. No other income at all.

I would be hit for income tax on the 250K. Clear enough.

Now I would already have paid 35% withholding tax on the interest on my balance. I assume I would pay wealth tax on some part of the value of my house. Would I have to pay wealth tax on all or part of my cash, despite having already been stiffed for 35% of <1% interest?

[1] If I really was that well off I would probably have a better idea of the tax rules.
Reply With Quote
 

Tags
federal, wealth, withholding




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
Baschi!!! [apparently some Swiss pop "star" has been "spotted"] Gina Daily life 28 22.06.2010 16:27
[UK news] Proposed "Fat tax" Lob International affairs/politics 27 25.04.2009 15:51
Definitive Tax Statement - "Verrechnung Haben" gbn Finance/banking/taxation 9 12.07.2007 16:55
"L" vs. "B" work permit van_niel Permits/visas/government 8 11.03.2007 13:14


All times are GMT +2. The time now is 14:33.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0