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Old 07.01.2008, 21:10
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yet another tax questions

Greetings,

A short intro - I'm software engineer in Zurich. I moved to Switzerland a year ago, and live at Zurich Canton.

As I'm taxed at source, I have some questions about the methods of tax calculation:

Assuming I'm married earning 130,000 and getting a 20,000 CHF bonus at the end of the year (Dec) = total income 150,000. Total tax should be 21467.

My employer pays me 10,000 a month and a 13 salary in Dec.


My monthly pay is 10,000, and the tax is calculated on a monthly basis (120,000 a year) 1171 CHF/month.
On December salary, my tax is calculated for an income of 40,000 (bonus + 2 salaries) - the tax is calculated based on this income 11653 CHF.
So the total tax being paid is 11 X 1171 + 11653 = 24534 CHF 3,000 CHF more that what I should pay.

I know that I can get a tax refund (but his takes 18 months, no?). I was wondering if it is a common practice in Switzerland to calculate the tax on a monthly basis or can it be calculated on a yearly basis (calculating the sum of income starting January 2007).

Thanks,
Daniel
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Old 07.01.2008, 21:28
swissbob
 
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Re: yet another tax questions

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Greetings,

A short intro - I'm software engineer in Zurich. I moved to Switzerland a year ago, and live at Zurich Canton.

As I'm taxed at source, I have some questions about the methods of tax calculation:

Assuming I'm married earning 130,000 and getting a 20,000 CHF bonus at the end of the year (Dec) = total income 150,000. Total tax should be 21467.

My employer pays me 10,000 a month and a 13 salary in Dec.


My monthly pay is 10,000, and the tax is calculated on a monthly basis (120,000 a year) 1171 CHF/month.
On December salary, my tax is calculated for an income of 40,000 (bonus + 2 salaries) - the tax is calculated based on this income 11653 CHF.
So the total tax being paid is 11 X 1171 + 11653 = 24534 CHF 3,000 CHF more that what I should pay.

I know that I can get a tax refund (but his takes 18 months, no?). I was wondering if it is a common practice in Switzerland to calculate the tax on a monthly basis or can it be calculated on a yearly basis (calculating the sum of income starting January 2007).

Thanks,
Daniel

Maybe you are taking your tax rate from your payslip which relates to 120K and using it against 150K. The problem is, you move up a few tax brackets in that extra 30K.

If you tale a look at this simple tax calculator for Zurich here, you'll find that if anything, you are getting away cheap if your figures are accurate.

Last edited by swissbob; 07.01.2008 at 21:31. Reason: invented a place called Zuroch
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Old 07.01.2008, 21:48
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Re: yet another tax questions

No, unfortunately the instructions are very clear on this. Has to be added in the month they are paid out.

http://www.steueramt.zh.ch/html/steu...if_a_QSt06.pdf

Quote:
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Greetings,

A short intro - I'm software engineer in Zurich. I moved to Switzerland a year ago, and live at Zurich Canton.

As I'm taxed at source, I have some questions about the methods of tax calculation:

Assuming I'm married earning 130,000 and getting a 20,000 CHF bonus at the end of the year (Dec) = total income 150,000. Total tax should be 21467.

My employer pays me 10,000 a month and a 13 salary in Dec.


My monthly pay is 10,000, and the tax is calculated on a monthly basis (120,000 a year) 1171 CHF/month.
On December salary, my tax is calculated for an income of 40,000 (bonus + 2 salaries) - the tax is calculated based on this income 11653 CHF.
So the total tax being paid is 11 X 1171 + 11653 = 24534 CHF 3,000 CHF more that what I should pay.

I know that I can get a tax refund (but his takes 18 months, no?). I was wondering if it is a common practice in Switzerland to calculate the tax on a monthly basis or can it be calculated on a yearly basis (calculating the sum of income starting January 2007).

Thanks,
Daniel
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Old 07.01.2008, 21:52
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Re: yet another tax questions

Thanks for the reply.
The numbers are taken from the site you mentioned.
My question is: Is it a common practice to calculate the tax on a monthly basis, or can the employer do a yearly calculation.
Thanks
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Old 07.01.2008, 21:54
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Re: yet another tax questions

Thanks for the answer.

Daniel
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