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Old 20.06.2013, 14:06
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Who is entitled to submit a tax declaration?

Hi guys,

I'm from an EU/EFTA state (namely Slovakia) and moved to Solothurn canton in the beginning of the year. I've received a yearly L permit (although I have an indefinite working contract). As such, I am paying "Quellensteuer", which is not a problem in a normal month, but I should get a 13th salary and additional bonus in December 2013. Since the taxes are progressive, they will tax the cr*p out of me in this month, I'm afraid. I heard, that (Quellengesteuert) taxpayers earning more than 120k CHF a year can submit a tax declaration, and reclaim the difference, but does that also apply to me, with my L permit, or I just have bad luck and try to arrange, that I get the bonus and 13th salary in different months?

Thanks for the advice in advance!
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Old 20.06.2013, 14:14
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Re: Who is entitled to submit a tax declaration?

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Hi guys,

I'm from an EU/EFTA state (namely Slovakia) and moved to Solothurn canton in the beginning of the year. I've received a yearly L permit (although I have an indefinite working contract). As such, I am paying "Quellensteuer", which is not a problem in a normal month, but I should get a 13th salary and additional bonus in December 2013. Since the taxes are progressive, they will tax the cr*p out of me in this month, I'm afraid. I heard, that (Quellengesteuert) taxpayers earning more than 120k CHF a year can submit a tax declaration, and reclaim the difference, but does that also apply to me, with my L permit, or I just have bad luck and try to arrange, that I get the bonus and 13th salary in different months?

Thanks for the advice in advance!
In my experience I had to pay more tax.
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Old 18.08.2016, 20:07
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Re: Who is entitled to submit a tax declaration?

Hi. I need some help too please. I came
To Zurich end of September last year and leaving Zurich end of September. My taxes are automatically deducted from
My wages which is fine but do I need to do anything like tax related - declare tax?
Also I might still have my ubs bank account opened until I clear any pending balances. I was told that my ubs account will be transferred to the uk desk and the the card in Zurich will be blocked. Not sure if I need to declare taxes for this and how?
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Old 18.08.2016, 20:10
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Re: Who is entitled to submit a tax declaration?

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Hi. I need some help too please. I came
To Zurich end of September last year and leaving Zurich end of September. My taxes are automatically deducted from
My wages which is fine but do I need to do anything like tax related - declare tax?
Also I might still have my ubs bank account opened until I clear any pending balances. I was told that my ubs account will be transferred to the uk desk and the the card in Zurich will be blocked. Not sure if I need to declare taxes for this and how?
If you earn under 10k a month, you won't have any further tax liability.

UBS will only know what you tell them.......
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Old 18.08.2016, 21:21
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Re: Who is entitled to submit a tax declaration?

In some ways I wish I did earn that much a month but it's no where near it. Brilliant. So I won't have issues having bank account opened in Zurich when I'm in London?
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Old 18.08.2016, 21:24
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Re: Who is entitled to submit a tax declaration?

I am a bit surprised as I have often heard UBS abroad is not that keen on private clients, at least not the non wealth management ones. But hey, surprises and miracles happen!
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Old 18.08.2016, 23:37
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Re: Who is entitled to submit a tax declaration?

I have a related question. Currently I'm earning below the 120 000 threshold. But I'm wondering what is would be like, just in case.

Let's take a salary of 144 000. This means:
  • Sozialabgaben of 19 884 (13.8%)
  • Quellensteuer of 19 080 (13.2%)
  • Total of 38 964 (27%)

Now let's compare the same salary with regular tax of Gemeinde Zurich:
  • Sozialabgaben of 19 884 (13.8%)
  • Bundessteuer of 6 873 (4.8%)
  • Staatsteuer of 10 703 (7.4%)
  • Gemeindesteuer of 12 737 (8.8%)
  • Total of 50 197 (34.9%)

Is this calculation correct? If so, this means much higher tax burden with the regular tax.

Can you tell me, how does it work? So I fill in the tax declaration, which states, that I should pay more taxes than I paid with Quellensteuer. Then what? They send me a bill to pay the difference?
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Old 19.08.2016, 12:52
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Re: Who is entitled to submit a tax declaration?

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I have a related question. Currently I'm earning below the 120 000 threshold. But I'm wondering what is would be like, just in case.

Let's take a salary of 144 000. This means:
  • Sozialabgaben of 19 884 (13.8%)
  • Quellensteuer of 19 080 (13.2%)
  • Total of 38 964 (27%)

Now let's compare the same salary with regular tax of Gemeinde Zurich:
  • Sozialabgaben of 19 884 (13.8%)
  • Bundessteuer of 6 873 (4.8%)
  • Staatsteuer of 10 703 (7.4%)
  • Gemeindesteuer of 12 737 (8.8%)
  • Total of 50 197 (34.9%)

Is this calculation correct? If so, this means much higher tax burden with the regular tax.

Can you tell me, how does it work? So I fill in the tax declaration, which states, that I should pay more taxes than I paid with Quellensteuer. Then what? They send me a bill to pay the difference?
With normal tax you only taxed on net income after about an additional 15k of further deductions from travel, health insurance, training & lunch at work. See what happens if you put in a salary of 110k
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Old 19.08.2016, 13:27
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Re: Who is entitled to submit a tax declaration?

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With normal tax you only taxed on net income after about an additional 15k of further deductions from travel, health insurance, training & lunch at work. See what happens if you put in a salary of 110k
Also take into account that the Quellensteuer rate is based on the average for the canton and Zürich city is higher than that average, so the average person in Zürich city will pay slightly more when filing a tax return. If you have more spicy deductions eg interest on debt, big training costs etc it works on your favour to file.
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Old 19.08.2016, 14:25
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Re: Who is entitled to submit a tax declaration?

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With normal tax you only taxed on net income after about an additional 15k of further deductions from travel, health insurance, training & lunch at work. See what happens if you put in a salary of 110k
Aha! That's interesting.
  • So we're starting with a gross income of 144 000
  • After Sozialabgaben we get around 124 000 net income
  • Then we deduct commute, lunch, health insurance, training, and we arrive at 110 000 taxable income

The updated list of taxes:
  • Sozialabgaben of 19 884 (13.8% of gross income)
  • Bundessteuer of 3 675 (2.6%)
  • Staatsteuer of 7 240 (5.0%)
  • Gemeindesteuer of 8 616 (6.0%)
  • Total of 39 415 (27.4%)

So we arrive at a very comparable total. It relies strongly on how much are you able to deduct. But I guess even with having only standard deductions it should be possible to stay within 30% of total burdens.

As a bonus: this calculation was made for the City of Zurich, with Steuerfuss of 119%. With a Steuerfuss of Küsnacht (77%), we could shave off 2% off the Gemeindesteuer.
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Old 19.08.2016, 17:06
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Re: Who is entitled to submit a tax declaration?

What social deductions do you have there? Does it include your pillar 2 (occupational pension) deductions? Social payments to the state should be 7.x% not 13+%
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Old 19.08.2016, 21:20
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Re: Who is entitled to submit a tax declaration?

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What social deductions do you have there? Does it include your pillar 2 (occupational pension) deductions? Social payments to the state should be 7.x% not 13+%
According to bruttonetto.ch:



So yes, it does include Pensionskasse.

By the way, I heard that you can only deduct medical costs if they exceed 5000 CHF per year? My health insurance is 200 per month so no chance.

I guess for a single person without any mortgage it would be hard to reach 15 000 in deductions.
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Old 19.08.2016, 22:32
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Re: Who is entitled to submit a tax declaration?

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According to bruttonetto.ch:



So yes, it does include Pensionskasse.

By the way, I heard that you can only deduct medical costs if they exceed 5000 CHF per year? My health insurance is 200 per month so no chance.

I guess for a single person without any mortgage it would be hard to reach 15 000 in deductions.
Taking your paragraphs in turn...

So it's not really a deduction, it's an assumption about the enforced saving you have to do of your own money for retirement.

Medical bills are separate to health insurance. There is a fixed amount in Zurich you can deduct for insurance. You choose whether to deduct the fixed cost or the actual premium, up to the max of the fixed cost. No evidence is required, so you decide... chances are the premium is more than you can claim though.

Medical expenses are for actual costs you have to bear for treatment. Not sure how it can be 5k minimum, given that largest franchise is 2.5k plus another 0.7k co-contribution maximum per year.

Partly depends on your pension contribution. That website is assuming 5.7%, my contribution is roughly double that (and goes up as I get older), so at that salary there's an extra 8k of deductions straightaway.
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Old 20.08.2016, 00:26
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Re: Who is entitled to submit a tax declaration?

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Taking your paragraphs in turn...

So it's not really a deduction, it's an assumption about the enforced saving you have to do of your own money for retirement.

Medical bills are separate to health insurance. There is a fixed amount in Zurich you can deduct for insurance. You choose whether to deduct the fixed cost or the actual premium, up to the max of the fixed cost. No evidence is required, so you decide... chances are the premium is more than you can claim though.

Medical expenses are for actual costs you have to bear for treatment. Not sure how it can be 5k minimum, given that largest franchise is 2.5k plus another 0.7k co-contribution maximum per year.

Partly depends on your pension contribution. That website is assuming 5.7%, my contribution is roughly double that (and goes up as I get older), so at that salary there's an extra 8k of deductions straightaway.
Thanks for the reply. I agree with you, that a retirement fund is not really a deduction. At least if you can eventually reclaim it. But still, this money is frozen for many years and I guess you cannot invest it? Maybe you can buy a flat with it.

That's a good argument about the health insurance. You know, I just hear someone say something and it's hard to verify. I could not find any website where it says what can be deducted and how big are the lump sums.

What's the advantage of a high pension contribution? If the money goes to the retirement fund, you cannot invest it yourself.
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Old 20.08.2016, 07:44
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Re: Who is entitled to submit a tax declaration?

My company makes (very) generous pension contributions, so it's only fair I to make a decent contribution too. From next year we will be able to at least choose how part of it is invested. Apparently it's against the law for them to allow us to make investment decisions on the whole pot. It's presumably to stop us going all in and losing the lot - this would never happen of course and a highly weighted equity portfolio would be my choice.

As you've seen from playing with the tool, you get an instant return on your investment in the pension fund of your marginal rate of taxation. Depending upon your income level and canton this can be very beneficial.
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Old 20.08.2016, 12:25
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Re: Who is entitled to submit a tax declaration?

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According to bruttonetto.ch:



So yes, it does include Pensionskasse.

By the way, I heard that you can only deduct medical costs if they exceed 5000 CHF per year? My health insurance is 200 per month so no chance.

I guess for a single person without any mortgage it would be hard to reach 15 000 in deductions.
I managed 17,000 CHF (404 CHF a day) travel to work when working part time, my total deductions being about 30,000 CHF. That is from NET income after ALL deductions. I never bothered with a Pillar 3 either.
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My company makes (very) generous pension contributions, so it's only fair I to make a decent contribution too. From next year we will be able to at least choose how part of it is invested. Apparently it's against the law for them to allow us to make investment decisions on the whole pot. It's presumably to stop us going all in and losing the lot - this would never happen of course and a highly weighted equity portfolio would be my choice.

As you've seen from playing with the tool, you get an instant return on your investment in the pension fund of your marginal rate of taxation. Depending upon your income level and canton this can be very beneficial.
I think the return from Swiss pensions is so poor I would not bother, the payout is also taxable.
My UK pension is worth 11 times the contributions (I have been investing the funds more recently) so tax payable on exit will exceed any, investing the money in a PEP / ISA would have been far better. There of course is no CGT in CH, so personal investments would be a better way to go IMO.
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