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Old 29.09.2012, 20:29
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Expat spouse tax

Hi All,
I am the spouse of an expat with a tax equalisation contract. I am employed on a local contract and as a foreigner with a b permit my tax is deducted at source.

My husband's company have used an accounting firm to calculate our joint Swiss tax return. They have calculated that more tax is due, which I had expected as I realise it is a joint salary return, however the split of this additional burden between myself and my husband seems a little unfair. The same overall percentage has been applied to both of us despite the fact I earn far less which results in me having to pay the same amount again as I have had deducted at source.

The reason the split between us matters is that if it falls to me, I pay. If it falls to my husband, his company pay. Currently means I will pay similar percentage as I would in UK on my wage.

Has anybody else had similar experience? Do I have any basis on which to dispute this or do I just have to accept it and stop letting it annoy me that I am no longer considered to be an individual ;-)
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Old 29.09.2012, 21:07
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Re: Expat spouse tax

Get divorced?

Reality is that, here, both pay the same percentage when taxed as married, that percentage being based on the total household income and wealth (Swiss or not).

Tom
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Old 30.09.2012, 04:48
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are you saying they divided the total Swiss tax on your joint return by 2 and asked you to pay for half?

That doesn't sound right....at least it should be prorated based on taxable income between you vs. Spouse and then net against the tax deducted at source....
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Old 30.09.2012, 09:26
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Re: Expat spouse tax

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Hi All,
The same overall percentage has been applied to both of us despite the fact I earn far less which results in me having to pay the same amount again as I have had deducted at source.
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are you saying they divided the total Swiss tax on your joint return by 2 and asked you to pay for half?
No, that isn't what she is saying
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Old 30.09.2012, 12:56
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Re: Expat spouse tax

Hi, no, I just have to pay the same percentage, not same amount. Just means that the incremental to pay for me is really high as the higher percentage is driven by my husband's salary.

I'll probably leave the divorce option for now as we're expecting our first baby :-)

Thanks for comments. Just wanted to check I wasn't being stitched up, but if that's the way it works, then so be it.
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Old 30.09.2012, 13:59
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Re: Expat spouse tax

As the tax equalization being paid by your husband's company is also increasing the taxable income, it seems unfair that you're disadvantaged by it. Can you suggest that the tax on the normal income (pre-equalization) is split between you & your husband and the tax in excess of this is considered to be related to the expat deal, & is borne by his employer?

Last edited by Camupa; 30.09.2012 at 16:32. Reason: correct typo
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Old 01.10.2012, 10:34
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Re: Expat spouse tax

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As the tax equalization being paid by your husband's company is also increasing the taxable income, it seems unfair that you're disadvantaged by it. Can you suggest that the tax on the normal income (pre-equalization) is split between you & your husband and the tax in excess of this is considered to be related to the expat deal, & is borne by his employer?
Sorry, but it works this way even if there were no expat deal.

Tom
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