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29.11.2012, 10:25
|  | Forum Legend | | Join Date: Dec 2009 Location: Roundn'about Basel
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | Good for you but I suspect irrelevant to the OP. It's not typical (to put it mildly) for local employed/recruited staff in CH. Added to that in Switzerland where your choice of home location affects your tax... | | | | | And that is why most companies won't give you a straight answer about your tax hit - because it varies on so many factors, hance a range. Nor do their know how rich an employee is, as overseas assets count.
So with these variables, it seems reasonable that they give you an estimate.
Your best bet would be to go speak to a tax accountant and ask for a couple of hours consultancy - which will cost of course - to get a true estimate. You'll need to guess where you will live, but you could ask the accountant to pick a high-middle-low option.
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29.11.2012, 10:29
|  | Forum Legend | | Join Date: Nov 2007 Location: ZH
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| | Re: Why is the tax system so complicated !?!
In Zürich, the Tax at source is based on the monthly gross salary (incl AHV, ALV, allowances etc). I thought this was the same all over Switzerland but you are saying that in Geneva it is different? I get a bit confused by your statment I must admit because you first say that the Tax at source is base on gross salary but then you apply it on gross salary minus deductions. This is not the way it is done in Zürich e.g.
In Zürich the calculation would look like this:
Gross salary: 110'000 / 12 = 9'167 per month
Tax at source (A0, no church tax): 984 CHF (10.72%)
A typical salary statement would look like this:
Salary: 9'167 CHF
AHV: -463 CHF
ALV: -92 CHF
BVG: ~300 CHF (guestimation)
Tax at source: -984 CHF
Net Salary: 7'328 CHF
Remember also that any car allowance or other monthly allowance is included in the calculation of gross salary for the purpose of tax at source. | Quote: | |  | | | The tax at source rate is based on the gross salary and applied to the gross minus contributions and insurances.
Net Salary = Brutto - [ (Brutto - Deductions) x Tax at source rate ]
Where:
- Tax at source rate: is based on the Brutto ammount.
- Deductions: are basically your AHV, pension and insurance contributions. | | | | | | 
29.11.2012, 10:31
|  | Forum Legend | | Join Date: Mar 2008 Location: Zurich
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | This is simpler than one might think...
The tax system is so complicated because the government doesn't want us to be able to understand how we're being screwed... | | | | | It's not just the taxes. The goverment is screwing us in almost everything it does.
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29.11.2012, 10:55
| Newbie 1st class | | Join Date: Nov 2012 Location: Geneva
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | Why does it sound strange? 
What you have above is your net annual salary. assuming the CHF13,000.- in deductions is correct and that you apply the correct tax rate then you should have the correct Netto.
I am not entirely sure if all social, pension and insurances are deducted before the tax rate is applied but I can probably check once I get home. But the pension and AHV are defo deducted before the tax is applied as the pension is taxed seperately when you reach retirement age so they can't tax it twice.
There was a nice calculator from accurity which used to give a good breakdown but it no longer works and keeps asking for a password. Grrr
The only variable in all of these calculations is the tax rate, which can easily be deducted from your gross salary. So as a rough guide I would say:
Net salary = (Gross x 0.9 ) x (1 - tax rate)
Here I am assuming 10% deduction for pension, AHV and insurances.
Based on (tax at source rates in Geneva you provided here), your marginal tax rate 17.28%, so my rough estimate would be:
Net salary = CHF9,000.- x 0.9 x (1 - 0.1728) Net Salary = CHF6700.- | | | | |
Your calculation is close to mine! makes me happy somewhat.
But the 10% might be a bit low.
I don't know what is taken into account by the company.
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29.11.2012, 11:10
|  | Forum Legend | | Join Date: Nov 2007 Location: ZH
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| | Re: Why is the tax system so complicated !?!
Use the Comparis site! I checked it for Zürich and it works perfectly so I am sure it is correct also for Geneva.
According to them, you're Tax at source could be 1'584 CHF/month (assuming unmarried, no kids, no church). On top of that your company will also deduct 6.05% for social security and somewhere around 300 CHF for Pension fund (second pillar).
I.e. your monthly statment will look like this:
Salary: 9'167 CHF
AHV: -463 CHF
ALV: -92 CHF
Pension: -300 CHF
Tax at source: -1'584 CHF
Net salary month: 6'728 CHF
If you receive car allowance or other allowances, this will be added to your salary and thus, your tax at source amount will increase.
Also, some companies charges part of the Salary continuation insurance and Accident insurance to the employee. This could add a further 1-2% deduction. | Quote: | |  | | | Your calculation is close to mine! makes me happy somewhat.
But the 10% might be a bit low.
I don't know what is taken into account by the company. | | | | | | This user would like to thank Tilia for this useful post: | | 
29.11.2012, 11:20
|  | Forum Legend | | Join Date: Apr 2008 Location: was Ägeri now Froggeri
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | Why does it sound strange?  | | | | | He's French
Seriously though, how did you cope with the French system if you think the Swiss one is complicated. The tax return is waay easier than a French ones, the system makes more sense, and they actually use computers to process things, not as paperweights like the impots.
The advice above gives you all the info' you need to establish a reasonably close figure for you take home salary.
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29.11.2012, 11:51
|  | Forum Veteran | | Join Date: Aug 2011 Location: Z-U-R-I-C-H
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | Do you know a country where the tax system is uncomplicated, excluding Dubai where they do not have one? | | | | | Nope, most countries are more or less in on it. | 
29.11.2012, 11:52
|  | Forum Veteran | | Join Date: Aug 2011 Location: Z-U-R-I-C-H
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| | Re: Why is the tax system so complicated !?! | Quote: | |  | | | Of all the countries I know Switzerland is the last place I would throw this flippant comment at. We get a c.40 page annual report to the CHF and rappen where the communal tax is spent... I'm sure I could find similar for the cantonal and federal budgets. | | | | | That's how the revenues are spent.
Thought we were talking about taxation?
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03.12.2012, 10:38
| Senior Member | | Join Date: Jan 2012 Location: Anywhere but deadheadland
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| | Re: Why is the tax system so complicated !?!
OP,
In Geneva, you may also get a housing allowance and a representation allowance as part of your salary, both of which are non-taxable.
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