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Old 17.07.2012, 17:46
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"Tax comparation" vs "Withholding tax" in comparis.ch

Hello,

I am L-permit holder. Now I move to Geneva from Zurich. I am thinking where it is better to live (Vaud or Geneva) from taxes point of view. I know that comparis is a good tool for that. But I don`t understand how to use it:
If I compare Geneva and Vaud in Withholding tax calculator, the result is taxes are higher in Vaud.

But if I compare for example Nyon (in Vaud) and Versoix (in Geneva) in "Tax comparation", it shows that for me taxes (even cantonal tax) will be higher in Versoix (Geneva).

Which calculator shows relevant for me information?

Thanks advance for the help.
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Old 17.07.2012, 18:09
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Hello,

I am L-permit holder. Now I move to Geneva from Zurich. I am thinking where it is better to live (Vaud or Geneva) from taxes point of view. I know that comparis is a good tool for that. But I don`t understand how to use it:
If I compare Geneva and Vaud in Withholding tax calculator, the result is taxes are higher in Vaud.

But if I compare for example Nyon (in Vaud) and Versoix (in Geneva) in "Tax comparation", it shows that for me taxes (even cantonal tax) will be higher in Versoix (Geneva).

Which calculator shows relevant for me information?

Thanks advance for the help.
Hi, you need to spend some time searching previous threads.

However if you are earning less than 120kchf per annum you will pay tax at source (I guess what you and comparis are calling withholding tax which normally has another sense) based on a cantonal tarriff based on your marital status declared religion if catholic or protestant and number of kids and that's it. For this you need to use on comparis http://en.comparis.ch/steuern/quelle...r/default.aspx

Over 120kchf you will fill in a tax return including assets and global income and be taxed on that so the commune will be relevant too, not just the canton. So you need to use http://en.comparis.ch/steuern/steuer...h/default.aspx You will still pay tax at source from your salary collected by your employer, unlike the Swiss who pay the tax office directly themselves.
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Old 17.07.2012, 18:31
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

Have you tried the tax comparison tool on Homegate? (Or am I imagining that one?)
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Old 18.07.2012, 09:45
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Hi, you need to spend some time searching previous threads.

However if you are earning less than 120kchf per annum you will pay tax at source (I guess what you and comparis are calling withholding tax which normally has another sense) based on a cantonal tarriff based on your marital status declared religion if catholic or protestant and number of kids and that's it. For this you need to use on comparis http://en.comparis.ch/steuern/quelle...r/default.aspx

Over 120kchf you will fill in a tax return including assets and global income and be taxed on that so the commune will be relevant too, not just the canton. So you need to use http://en.comparis.ch/steuern/steuer...h/default.aspx You will still pay tax at source from your salary collected by your employer, unlike the Swiss who pay the tax office directly themselves.
Hi, thanks for explanation, but I still didn't get the point.

Lets assume my annual salary is 135000 CHF and I don't have any assests.

Does it mean that I should comletely ignore "Withholding tax" calculation and base my calculations only on "Tax comparasion" calculator?
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Old 18.07.2012, 10:51
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Hi, thanks for explanation, but I still didn't get the point.

Lets assume my annual salary is 135000 CHF and I don't have any assests.

Does it mean that I should comletely ignore "Withholding tax" calculation and base my calculations only on "Tax comparasion" calculator?
Your monthly deduction from salary will be based on the withholding tax tables. But in the end (about 6-9 months after the end of each tax year you will a refund or have to pay the difference to the direct tax tables.

Often times if you live in a cheaper tax commune and have simple affairs you will a refund as the wht tables are based on a cantonal average. But it can go the other way too.

So for monthly budget consider the why tables and treat the refund as a bonus ;-)
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Old 23.11.2012, 14:14
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Your monthly deduction from salary will be based on the withholding tax tables. But in the end (about 6-9 months after the end of each tax year you will a refund or have to pay the difference to the direct tax tables.

Often times if you live in a cheaper tax commune and have simple affairs you will a refund as the wht tables are based on a cantonal average. But it can go the other way too.

So for monthly budget consider the why tables and treat the refund as a bonus ;-)
Useful post - thank you! This, I think, answers a question I have been wondering - does withholding tax (or Quellensteuer) include Federal, Canton AND Commune tax? It seems yes from what you say but they estimate the average Commune tax for the Canton and then balance it up with a refund/tax demand after the end of the tax year? Do I understand correctly?
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Old 23.11.2012, 14:20
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Useful post - thank you! This, I think, answers a question I have been wondering - does withholding tax (or Quellensteuer) include Federal, Canton AND Commune tax? It seems yes from what you say but they estimate the average Commune tax for the Canton and then balance it up with a refund/tax demand after the end of the tax year? Do I understand correctly?
Yes, but only if you earn more than 120kchf (even then not in some cantons) or you have complicated tax affairs (overseas properties, or significant other sources of income).
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Old 23.11.2012, 14:25
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

Actually, I see the OPs point - if you put the same salary in the "Tax Comparison" and then in "Witholding tax" - Withholding tax is MUCH less. So it would appear that Withholding tax DOESN'T include the Commune tax, just federal and cantonal.
I have searched the forum for an answer to this question before anybody tells me to do this - this actual point does not seem to be addressed, although I may have missed something as some of the threads are very long and often digress.
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Old 23.11.2012, 14:34
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Actually, I see the OPs point - if you put the same salary in the "Tax Comparison" and then in "Witholding tax" - Withholding tax is MUCH less. So it would appear that Withholding tax DOESN'T include the Commune tax, just federal and cantonal.
I have searched the forum for an answer to this question before anybody tells me to do this - this actual point does not seem to be addressed, although I may have missed something as some of the threads are very long and often digress.
The two calculators dont ask for the same income data. The WHT wants your gross salary, whereas the tax comparator ask for your taxable income... which after deductions (which includes pensions and social security) is by definition going to be lower than your gross salary if that is your only source of income. So if you put in the same taxable income you end up with more tax in the tax comparator tool. Read the little "i" tooltip.

Both give you all three levels of income tax in the number. Since most cantons have quite high marginal tax rates (40-55%) at middling incomes, that can make a big difference (eg 3.8kchf on 120kchf input for single earner, couple with no kids or religion in SZ) in the tax amounts the tools report.
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Last edited by dannyt986; 23.11.2012 at 14:37. Reason: Clearer but same answer.
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Old 23.11.2012, 14:56
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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The two calculators dont ask for the same income data. The WHT wants your gross salary, whereas the tax comparator ask for your taxable income... which after deductions (which includes pensions and social security) is by definition going to be lower than your gross salary if that is your only source of income. So if you put in the same taxable income you end up with more tax in the tax comparator tool. Read the little "i" tooltip.
Ah yes - if in doubt, read the instructions! My bad, was putting the same figure in both calculations. But, good news for me as it seems the lower amount is correct! Thanks for the explanations guys. (Not worked out how to 'formally' thank somebody yet....) And thank you for the non-sarcastic replies that forums are often littered with.
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Old 23.11.2012, 14:58
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Re: "Tax comparation" vs "Withholding tax" in comparis.ch

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Ah yes - if in doubt, read the instructions! My bad, was putting the same figure in both calculations. But, good news for me as it seems the lower amount is correct! Thanks for the explanations guys. (Not worked out how to 'formally' thank somebody yet....) And thank you for the non-sarcastic replies that forums are often littered with.
You're welcome. The thanks button only appears after 10 or 12 posts...
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