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Old 29.03.2013, 14:54
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Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Hi all,

I have searched, and searched, and searched all over. I am deeply sorry for posting this if it was already discussed but I have gotten mixed answers mostly ''you dont'' but want to confirm as I have some expat friends who were ripped off by CH accountants.

IF
- I am on a b permit (non-EU)
- If I am taxed at source, ''Source Tax / Quellensteuer'' on my pay stub
- If I Do not own assets (House) etc.
- If I Make below 120k CHF

I dont have to file taxes in Switzerland right?

I have been told I dont by numerous people, because I dont own assests, I am taxed at source, and are a Bpermit holder.


Edit. do i need to file a tax declaration? read here from someone that the Tax authorities send you the forms to file in CH. I obviously did not get that in 2012 (For the year 2011), so I assume again, ''i dont have to file'' due to the points noted above?
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Old 29.03.2013, 17:22
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Add
- if the tax authorities did not send me tax forms

to your checklist.

The key one is the earning over 120K, and despite what you might read on the forum, it's 120K for one single income earner, not combined income of the household...
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Old 29.03.2013, 18:23
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Thank you Swisspea
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Old 29.03.2013, 19:00
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

I was told you don't "have to". But you can "insist" to file your tax returns.
Usually if you make under 120kchf, it is better (lower tax) to accept the Quellensteuer (tax at source).

Any deltas (+/-), will be returned or billed to you again, if you choose to file a tax return.

If you have many bills to pay, eg: housing repairs, etc, it may make sense to file a tax return. (A friend once paid 50chf for his income tax after a massive house renovation in Zurich)

However, once you file, they will "expect" you to file every year.

Again, this is told to me by some swiss friends. Ask again at your Gemeinde tax office.
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Old 30.03.2013, 09:23
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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Hi all,

I have searched, and searched, and searched all over. I am deeply sorry for posting this if it was already discussed but I have gotten mixed answers mostly ''you dont'' but want to confirm as I have some expat friends who were ripped off by CH accountants.

IF
- I am on a b permit (non-EU)
- If I am taxed at source, ''Source Tax / Quellensteuer'' on my pay stub
- If I Do not own assets (House) etc.
- If I Make below 120k CHF

I dont have to file taxes in Switzerland right?

I have been told I dont by numerous people, because I dont own assests, I am taxed at source, and are a Bpermit holder.


Edit. do i need to file a tax declaration? read here from someone that the Tax authorities send you the forms to file in CH. I obviously did not get that in 2012 (For the year 2011), so I assume again, ''i dont have to file'' due to the points noted above?
hi, we have the same experience, i did go to the steuervervaltung here in basel. and i ask for the income tax return. and they ask me why i need it? and ive answered, well if i could have a income tax return that would help alot for my family, they ve even ask me about my loan ausweiss for the year 2012. and then give to me the papers for the income tax return to be filled out and send it to them until the end of september these year.
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Old 30.03.2013, 10:02
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

I also read somewhere that it is good to file tax return in first year if you have not started working from Jan 1. In that case you will get some refund because your annual salary will be less than actual.
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Old 30.03.2013, 10:05
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

If you are getting 30% lopped off your income in tax, then it's probably worth it, though Wädenswil is not a low tax area...
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Old 31.03.2013, 23:54
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

In every other country I've lived the tax authorities have sent me a tax return a couple of months after the end of the tax year. Last year I didn't get one in Basel-Stadt. I only worked three months in 2011. In 2012 I worked the whole year. Should I expect to receive something from the authorities?

Like the OP I'm on a B permit, the company withholds tax at source and I have no assets. Unlike the OP I make more than CHF 120k.
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Old 02.04.2013, 08:43
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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In every other country I've lived the tax authorities have sent me a tax return a couple of months after the end of the tax year. Last year I didn't get one in Basel-Stadt. I only worked three months in 2011. In 2012 I worked the whole year. Should I expect to receive something from the authorities?

Like the OP I'm on a B permit, the company withholds tax at source and I have no assets. Unlike the OP I make more than CHF 120k.

I have been told to check my local Geminde, there is a local Tax advisor/person there who can advise you further.

Better to be sure than end up with a nice bill later on

I will ask my Geminde, will keep you posted.
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Old 02.04.2013, 09:44
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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I have been told to check my local Geminde, there is a local Tax advisor/person there who can advise you further.

Better to be sure than end up with a nice bill later on

I will ask my Geminde, will keep you posted.
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In every other country I've lived the tax authorities have sent me a tax return a couple of months after the end of the tax year. Last year I didn't get one in Basel-Stadt. I only worked three months in 2011. In 2012 I worked the whole year. Should I expect to receive something from the authorities?

Like the OP I'm on a B permit, the company withholds tax at source and I have no assets. Unlike the OP I make more than CHF 120k.
I moved from AG to ZH.
The rules are interpreted in different ways, resulting in 3 years of letter-fighting and finally a penalty of 700chf to be paid by me (back-interests).

You MUST ask your Gemeinde Tax Office. They will tell you the definitive rules about your situation.

And yes, they COULD HAVE missed you. They are not so efficient because they are always under-manpowered.
Plus: It is ALWAYS your fault. You are obliged to inform them about the taxes you OWE THEM.
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Old 03.04.2013, 17:34
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Hi All confirmed with the Geminde, but she (nice lady) reffered me to the Tax authority in the main Canton office.


-------
They are residents, [with a] "B", that is, you pay a withholding tax, unless you have an annual salary of over CHF 120,000, then you get a tax return. Everything that relates to the withholding tax is processed by the cantonal tax administration, I can not therefore tell you with certainty whether you will still get a tax return.
------

Basically she confirmed what we all stated (below 120K, b permit, taxed at source = no need to file taxes). But I will double confirm with the Tax office.
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Old 03.04.2013, 22:05
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Thanks for the information. Worth checking with the authorities in Basel-Stadt. I'll report back what I find as well.
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Old 03.04.2013, 22:26
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

I understand, given your circumstances, you don't have to but if you wanted to file a tax return if that this is advantageous (i.e. would lead to a tax refund), you could do that. You need to consider that tax at source already takes into account some basic deductions so normally works out lower tax liability than doing a tax return but if you have deductions (such as pillar II or III or others), then it may be worth filing a return.
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Old 03.04.2013, 23:36
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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Hi All confirmed with the Geminde, but she (nice lady) reffered me to the Tax authority in the main Canton office.


-------
They are residents, [with a] "B", that is, you pay a withholding tax, unless you have an annual salary of over CHF 120,000, then you get a tax return. Everything that relates to the withholding tax is processed by the cantonal tax administration, I can not therefore tell you with certainty whether you will still get a tax return.
------

Basically she confirmed what we all stated (below 120K, b permit, taxed at source = no need to file taxes). But I will double confirm with the Tax office.
In AG, B-permits under 120kchf is taxed at source. B-permits over 120kchf is not taxed at source but given a yearly tax return form to fill up.
(data correct at 2006-2009)

In ZH, B-permits is taxed at source whatever the income. If over 120kchf, you will be required to fill in a tax return form.
(data correct at 2006-2009)

In both cases, under 120kchf, you are allowed to request for a tax return form. That is, if you think you are better off with this method.
(data correct at 2006-2009)

Other cantons, can interpret differently.
Now it is 2013, rules could have changed (again).

Again, best is to ask at the Gemeinde Tax Office AND get a confirmation via written form.

Why? I asked also a "nice lady" in AG, and in the end she did not work there anymore, and I had NO PROOF of the rubbish she told me. Everything should be written, even an email is good.

Hope this helps.
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Old 03.04.2013, 23:49
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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In AG, B-permits over 120kchf is not taxed at source but given a yearly tax return form to fill up.
(data correct at 2006-2009)

Now it is 2013, rules could have changed (again).

Current position in AG:
B-permit over 120kCHF is taxed at source, and also given the delight of an annual tax return to fill (valid 2011 - 2013...no idea about 2010, I was in Luxembourg!)
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Old 04.04.2013, 07:23
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

1) If on B permit and earning <120kf (<500kf in GE) then taxed at source and you are done.
2) If on C permit, or B permit married to a C permit/swiss, then ordinary taxation. You are not taxed at source by the employer, but taxes calculated after the end of a year via a tax declaration. However, to avoid a huge bill or being tempted to spend the money I guess, the cantons ask you to make 0-10 payments (number depends on the canton) via orange slips. So a bit like tax at source, but not done by the employer. These are estimated amounts of your tax, and are adjusted after the tax declaration (payments on account if you want). [If you change canton before Dec they are refunded].

The key difference between (1) and (2) is not only they way you pay, but that they use different calculation formulas, so the amount of tax due is different - can be higher or lower depending on the circumstances. And you cannot choose really.

3) If on B permit and earning >120kf (>500kf in GE) then taxed at source, but at the end you do a tax declaration and they recalculate everything using the ordinary taxation formula, usually ending up in large adjustments (large bill or large refund). In that aspect, the tax at source amount taken means nothing (it may as well have been any amount) as they will recalculate all taxes anyway using a different system.

4) If you are in case (1) taxed at source, some cantons allow a "simplified declaration" usually to obtain refund of some taxes or to get allowances. In VD you can only use this to ask for refund of tax for Pillar 3 contributions and anticipated tax kept by your bank. The calculation of taxes continues to be using tax at source formula and rules, not ordinary taxation. In that aspect, these simplified tax declarations are tax refund forms, to account for additional allowances. Even if you have done these forms, you still face a jump in taxes owned (up or down) when moving to ordinary taxation due to the different tax rules and rates used.

5) if a couple, you are taxed at source ie (1), if person A earns <120kf AND person B earns <120kf. If one of the 2 earns more than 120kf, they both are subject to (3).
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Old 05.04.2013, 21:24
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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3) If on B permit and earning >120kf (>500kf in GE) then taxed at source, but at the end you do a tax declaration and they recalculate everything using the ordinary taxation formula, usually ending up in large adjustments (large bill or large refund). In that aspect, the tax at source amount taken means nothing (it may as well have been any amount) as they will recalculate all taxes anyway using a different system.
This is my situation. I understand from the above that filing a return is optional (?). Is there a way to tell if I should or should not file a return? As in, how would one know if the adjustment will be up or down? I asked a tax advisor quite informally and generally, and he said don't do it.
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Old 05.04.2013, 22:37
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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This is my situation. I understand from the above that filing a return is optional (?). Is there a way to tell if I should or should not file a return? As in, how would one know if the adjustment will be up or down? I asked a tax advisor quite informally and generally, and he said don't do it.
Maybe look at the info on the website. They should have a guide on who should file.

In Vaud: it says clearly in many places that such people "must file a tax return". So definitely compulsory, not a choice. However, you cannot file until they send you the details / forms / codes. So you cannot "cold send" one tax declaration (not even online), they have to invite you first. But, I don't know if you just wait till they realise and send you one, or you if they don't then you should contact them and ask for one. - who is to blame?

In my case, I contacted them and they send me now a form to complete. Just because I thought that, usually, the Swiss way of doing things would be, once they realised down the line they would ask me to fill a form for the previous years,... and as im my case I have to pay extra, I'd rather get it over with, rather worry all the time about a potential huge cumulative bill...
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Old 15.11.2017, 21:16
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

Hi all,

sorry for reviving an old thread. I am trying to figure out whether it is necessary to file a tax return due to having some investments in mutual funds.

I have an income below 120K and pay withholding tax. But as I understand, having some savings in stocks or mutual funds gives me the obligation to file a tax declaration. Am I correct? Or is there some threshold/allowance below which the tax office doesn't care? Does it matter whether the mutual funds are bought via foreign bank?
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Old 15.11.2017, 21:19
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Re: Do I need to file taxes in Switzerland? Bpermit, taxed at source.

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Does it matter whether the mutual funds are bought via foreign bank?
No, tax is based on your world wide income/assets, irrelevant where
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