Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 05.09.2012, 01:17
Newbie 1st class
 
Join Date: Aug 2012
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
jobee has no particular reputation at present
First pay check, confused by tax here versus UK

Hi I'm a bit confused as to the difference between here and the UK. I don't seem to have paid much tax and I'm wondering if I'll get one of these mysterious big bills later in the year other people I know have had. I'm used to the UK system, in which everything is taxed through your payroll, when you get paid monthly.

I moved to Zurich last month to live with my boyfriend, we're not married so I'm taxed as a single person. I'm working part-time and my hours are slowly increasing, while I look for more hours or a second job. I've received my first pay check (monthly) and my total gross salary was just under 2.5k Fr.

My deductions were for AHV 5.15%, ALV 1.1%, insurance premium for accidents, and income tax at source.

I've been told my pensions contributions will be backdated when they have a clearer idea of what my average salary will be.

I paid 198 Fr in deductions, including only 36 Fr in income tax at source. This seems very lwo to me. Is this normal for someone earning my wage, as it is low, or will I be expected to pay tax in another way? And how do I go about doing this?

I am worried and would really appreciate any advice anyone can give.
Reply With Quote
  #2  
Old 05.09.2012, 01:45
Newbie 1st class
 
Join Date: Aug 2012
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
jobee has no particular reputation at present
Re: First pay check, confused by tax here versus UK

To anyone else reading this and feeling the same, this page seems to help - http://www.expatfocus.com/expatriate...rland-taxation

Still not sure if I'm paying the right amount though. I have a B permit.
Reply With Quote
  #3  
Old 05.09.2012, 03:18
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 853
Groaned at 5 Times in 4 Posts
Thanked 1,389 Times in 527 Posts
heckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond repute
You can download the quellensteuer tables here : http://www.estv.admin.ch/bundessteue...726/index.html

And then check the right amount was deducted. I'd have a look for you, but iPad won't download a zip file.

Don't Roget you have a tax free amount, so you need to consider taxable income, not gross....
Reply With Quote
  #4  
Old 05.09.2012, 03:30
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 853
Groaned at 5 Times in 4 Posts
Thanked 1,389 Times in 527 Posts
heckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond reputeheckenhocker has a reputation beyond repute
Sorry, I don't mean tax free amount, I mean deductions. Social security is deducted from your gross to give the taxable income
Reply With Quote
  #5  
Old 05.09.2012, 10:18
eyebeebe's Avatar
Forum Veteran
 
Join Date: May 2009
Location: Pfäffikon SZ
Posts: 2,301
Groaned at 21 Times in 20 Posts
Thanked 3,106 Times in 1,311 Posts
eyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post
Sorry, I don't mean tax free amount, I mean deductions. Social security is deducted from your gross to give the taxable income
Not for tax at source it isn't! Quellensteuer (at least in Zurich) is deducted on the gross monthly income, but is set at a level that the average person living in a community with the average tax rate for the canton would pay after all normal deductions (social security, pension, travel to work etc). The idea is that at the end of the year, if you were requested to complete a tax return, you would owe nothing and the tax authorities would owe you nothing. Clearly this notional average person doesn't exist very often. Hence money is owed one way or the other.

OP - don't worry about having to submit tax returns you would need to earn over CHF 120k per calendar year for that. Assuming you worked a full month and earned 2.5k you should have paid about 50 in tax. If you only arrived mid month and worked to earn 2.5k your tax rate would be based on grossing your wage to a full month ie 5k and would be about 300. Tax rates, particularly at lower levels are particularly favourable compared with the UK
Reply With Quote
This user would like to thank eyebeebe for this useful post:
  #6  
Old 05.09.2012, 10:30
The_Love_Doctor's Avatar
Forum Legend
 
Join Date: Aug 2009
Location: Zugerberg, Zug
Posts: 3,266
Groaned at 72 Times in 58 Posts
Thanked 3,715 Times in 1,747 Posts
The_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post

I paid 198 Fr in deductions, including only 36 Fr in income tax at source. This seems very lwo to me. Is this normal for someone earning my wage, as it is low, or will I be expected to pay tax in another way? And how do I go about doing this?

I am worried and would really appreciate any advice anyone can give.

Stop worrying... this is normal, if you have paid CHF36.- in Quellensteuer then that means you earn between CHF2301.- and CHF2350 according to this document [ here ] (page 7: tax for single person without kids and without church tax)

As for your Pensions contributions they will be backdated I guess as this makes sense but I think they are likely to do it next month rather than leave it for a few months before they slap you with a massive deduction.

Welcome to Switzerland.
Reply With Quote
The following 4 users would like to thank The_Love_Doctor for this useful post:
  #7  
Old 05.09.2012, 11:17
Sbrinz's Avatar
RIP
 
Join Date: Oct 2011
Location: Murten - Morat
Posts: 11,866
Groaned at 563 Times in 354 Posts
Thanked 11,548 Times in 5,941 Posts
Sbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

You did well to worry about your deductions! You might want to save 15% of your salary each month to soften the back dated pension shock.

For new people it is tricky to get used to the system here. Many people have savings, and it is worthwhile putting some money aside each month to pay for the unexpected.

When I arrived here 22 years ago I was not taxed at source as I was working in a different Canton as my employer, and I asked my colleagues, (Also in a different Canton) how much tax to expect. They all said about 12'000 but when I received the first bills they amounted to 19'000 ! And so began my love / hate relationship with my bank and the overdraft facilities!
Reply With Quote
  #8  
Old 05.09.2012, 11:25
Assassin's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Chasing clouds
Posts: 4,023
Groaned at 180 Times in 123 Posts
Thanked 11,560 Times in 3,148 Posts
Assassin has a reputation beyond reputeAssassin has a reputation beyond reputeAssassin has a reputation beyond reputeAssassin has a reputation beyond reputeAssassin has a reputation beyond reputeAssassin has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Maybe they just think you're a Scientologist and have sent the balance over to the nutcases in the US?
Reply With Quote
  #9  
Old 05.09.2012, 14:22
Newbie 1st class
 
Join Date: Aug 2012
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
jobee has no particular reputation at present
Re: First pay check, confused by tax here versus UK

Thank you SO MUCH for all this, I'm really grateful for the advice, given so quickly too. I really appreciate the time you've taken to look up links, read through them and tell me about your experiences.
I am now utterly converted to EF
Now to figure out how to thank people for individual posts...
Reply With Quote
  #10  
Old 05.09.2012, 14:48
The_Love_Doctor's Avatar
Forum Legend
 
Join Date: Aug 2009
Location: Zugerberg, Zug
Posts: 3,266
Groaned at 72 Times in 58 Posts
Thanked 3,715 Times in 1,747 Posts
The_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post
Now to figure out how to thank people for individual posts...
Use this ---->

or better even... give some reputation using this:

Reply With Quote
  #11  
Old 05.09.2012, 14:52
Newbie 1st class
 
Join Date: Aug 2012
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
jobee has no particular reputation at present
Re: First pay check, confused by tax here versus UK

Ahhh I think I'm too new on EF to post thanks yet or see those icons, but I will soon thanks!
Reply With Quote
  #12  
Old 05.09.2012, 14:58
The_Love_Doctor's Avatar
Forum Legend
 
Join Date: Aug 2009
Location: Zugerberg, Zug
Posts: 3,266
Groaned at 72 Times in 58 Posts
Thanked 3,715 Times in 1,747 Posts
The_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond reputeThe_Love_Doctor has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post
Ahhh I think I'm too new on EF to post thanks yet or see those icons, but I will soon thanks!
Yep you need ten posts...
You're nearly there
Reply With Quote
  #13  
Old 05.09.2012, 15:33
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 11,350
Groaned at 90 Times in 86 Posts
Thanked 19,665 Times in 8,701 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post
OP - don't worry about having to submit tax returns you would need to earn over CHF 120k per calendar year for that.
Erm...really? So you can earn 119,999 and have a million in investments and still not file?
Reply With Quote
  #14  
Old 05.09.2012, 15:38
JBZ86's Avatar
Forum Legend
 
Join Date: Oct 2010
Location: Zurich and various mountains
Posts: 3,709
Groaned at 520 Times in 337 Posts
Thanked 4,258 Times in 1,944 Posts
JBZ86 has a reputation beyond reputeJBZ86 has a reputation beyond reputeJBZ86 has a reputation beyond reputeJBZ86 has a reputation beyond reputeJBZ86 has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Dont worry, tax here is very low compared to UK anyway, as here you are not supporting communities of dossers and foreigners / spongers, and career mums.

There are also numerous tax brackets as opposed to the broader brackets in UK.

As someone else said, you will be under the filing obligation anyway, but it is always worth going to payroll just for some guidance out of interest. I did this merely to get an undertsanding of how it works and its interesting to see all the different tax income bands and applicable rates.
Reply With Quote
  #15  
Old 05.09.2012, 17:22
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,701
Groaned at 35 Times in 32 Posts
Thanked 6,966 Times in 2,251 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: First pay check, confused by tax here versus UK

Quote:
View Post
I paid 198 Fr in deductions, including only 36 Fr in income tax at source. This seems very lwo to me. Is this normal for someone earning my wage, as it is low, or will I be expected to pay tax in another way? And how do I go about doing this?
This number looks about right -- it's based on the (hypothetical) calculation of an annual gross income of CHF30k (2.5k x 12). At such a low income level, it's perhaps not unsurprising that the vast majority of your income is taxed at a very low rate.

Here is a clearer table showing what the quellensteuer / withholding tax should be, based on gross monthly income:

http://www.steueramt.zh.ch/dam/finan..._qst12_def.pdf
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
Very confused about tax on UK property djc1885 Finance/banking/taxation 22 07.05.2013 20:10
buy laptop in UK, claim back tax in uk airport, pay tax is Switzerland - worth it? AndyTWoods Business & entrepreneur 10 26.08.2011 10:07
Swiss tax versus UK tax TheRock Finance/banking/taxation 8 25.03.2010 23:11
Confused by my wage deductions here in Switzerland hollisterb Finance/banking/taxation 3 28.11.2009 01:24
Pay tax on car if sold in CH & living here < 1 year? telemark Transportation/driving 3 09.04.2008 21:27


All times are GMT +2. The time now is 07:58.


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