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-   -   Tax refund question (https://www.englishforum.ch/finance-banking-taxation/166733-tax-refund-question.html)

Jayz 15.01.2013 14:30

Tax refund question
 
Hi,

New poster so please be gentle :D

I relocated to Zurich in Mid November 2011 on a renewable contract (puts me on an L permit if that is relevant), paying withholding tax.

In November 2012 I received a reminder asking me to submit my tax return for 2011. I (or rather a German speaking friend) rang them up and explained that I had never received a return to complete and they sent me a duplicate form.

I completed all the forms and returned them at the start of December (sent recorded delivery, so I know they received them) and have heard nothing from them since.

The annual salary statement that I had from my employer showed that in the 2.5 months I paid around 5000fr withholding tax and when I checked the federal and cantonal tax rates at the back of the booklet they sent with the return, it looks like my tax liability should be only around 500fr.

My question is should I be entitled to a refund of the overpaid tax and if so how long does it normally take for them to process?

Tim8803 15.01.2013 15:31

Re: Tax refund question
 
I have my tax deducted at source and expect a small refund for 2011. Submitted my tax return in May last year and have not heard a single thing yet. So it's not going to be quick. Good news is you get interest on any refund owed to you.

adrianlondon 15.01.2013 15:35

Re: Tax refund question
 
Don't forget that your tax liability won't be spread over the entire year, but for the 1.5 months (friom mid November 2011 when you arrived til the end of the year) that you were resident in Switzerland.

In other words, they will take what you earned over 1.5 months and multiply it by 8, and work out your "yearly" amount based on that.

AbFab 15.01.2013 17:46

Re: Tax refund question
 
Don't expect to hear anything for some months or even a year after submitting your tax form. That's how it is...

Jayz 15.01.2013 18:55

Re: Tax refund question
 
Quote:

Originally Posted by adrianlondon (Post 1768618)
Don't forget that your tax liability won't be spread over the entire year, but for the 1.5 months (friom mid November 2011 when you arrived til the end of the year) that you were resident in Switzerland.

In other words, they will take what you earned over 1.5 months and multiply it by 8, and work out your "yearly" amount based on that.

I actually mistyped - it was mid-October when I arrived, so it is actually 2.5 months.

I'm not sure that I fully understand what you are saying though. Are you saying that even though I only earned 39,000fr in the tax year in this country (I had earnings in the UK previous to that, but they were obviously taxed in the UK), that when they assess my tax liability in the tables at the back, that I will be taxed based on an assumed annual salary of 200,000+fr, even though I didn't earn that money?

adrianlondon 15.01.2013 19:24

Re: Tax refund question
 
Quote:

Originally Posted by Jayz (Post 1768912)
I'm not sure that I fully understand what you are saying though. Are you saying that even though I only earned 39,000fr in the tax year in this country (I had earnings in the UK previous to that, but they were obviously taxed in the UK), that when they assess my tax liability in the tables at the back, that I will be taxed based on an assumed annual salary of 200,000+fr, even though I didn't earn that money?

Not quite. You will pay 2.5/12 the amount of tax that someone who earnt that would pay.

So if someone earning 200,000 pays tax at 20% and someone earning 39000 pays tax at 8% (made up numbers) then they would tax you at 20%.

Jayz 16.01.2013 11:21

Re: Tax refund question
 
Thanks again adrian (unfortunately it looks like as a Newbie I can't give you forum thanks)

OK, so they base your tax rate on your assumed annual earnings.

I guess I've just learnt another Swiss bureaucratic quirk :msngrin:


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