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-   -   Living/working in different cantons and having to pay double tax (https://www.englishforum.ch/finance-banking-taxation/183903-living-working-different-cantons-having-pay-double-tax.html)

kona 02.08.2013 23:56

Living/working in different cantons and having to pay double tax
 
This is my first post here, so hello everyone!

I have a question because I am in a difficult situation. I am on a B permit, so sourced at tax. I live in a different canton from where I work, so I think my employer pays the tax in their canton (Zurich), which then has to transfer the money to mine.

The problem is that my canton & gemeinde have not received the money still, so they both sent me bills which I had to pay in the end because deadlines were approaching. They told me they understood the situation and that Zurich often does that because they are busy, but I had to pay the taxes before the deadline nonetheless otherwise I would be fined. They would then refund me the taxes once they received the money from Zurich.

Now it's been a month, and I still have not received a refund. So Zurich has been holding money which isn't theirs for over 7 months now.

Is there anything I can do about this?

Sbrinz 03.08.2013 00:01

Re: Living/working in different cantons and having to pay double tax
 
Talk to your employer, ask them to refund the tax they have paid to the wrong Canton? Ask the employer for a loan until it is sorted out.

marton 03.08.2013 00:03

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by kona (Post 1941587)
This is my first post here, so hello everyone!

I have a question because I am in a difficult situation. I am on a B permit, so sourced at tax. I live in a different canton from where I work, so I think my employer pays the tax in their canton (Zurich), which then has to transfer the money to mine.

The problem is that my canton & gemeinde have not received the money still, so they both sent me bills which I had to pay in the end because deadlines were approaching. They told me they understood the situation and that Zurich often does that because they are busy, but I had to pay the taxes before the deadline nonetheless otherwise I would be fined. They would then refund me the taxes once they received the money from Zurich.

Now it's been a month, and I still have not received a refund. So Zurich has been holding money which isn't theirs for over 7 months now.

Is there anything I can do about this?

Sadly the Zurich tax people often take years - I just got a refund from 2011 but it was classified as an estimate to be finalised later (when is later?).

kona 03.08.2013 00:13

Re: Living/working in different cantons and having to pay double tax
 
Thanks for the replies so far.

Sbrinz: I have spoken to my employer (an agency) but they are not helpful. I think they are within their rights to pay the tax in Zurich. I have heard that there are better agencies that are registered in multiple cantons and can pay the tax where you live. If so, I will try changing agency.

Marton: Years?? Please don't say that... Do you pay tax in Zurich, and they just refunded part of the amount because of overpayment? If so this means that had to do some work in your case, i.e. calculate how much tax you owed. I hope my situation is simpler since Zurich doesn't have to calculate anything, they just need to transfer the entire amount to my canton.

k_and_e 03.08.2013 00:49

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by kona (Post 1941587)
This is my first post here, so hello everyone!

I have a question because I am in a difficult situation. I am on a B permit, so sourced at tax. I live in a different canton from where I work, so I think my employer pays the tax in their canton (Zurich), which then has to transfer the money to mine.

The problem is that my canton & gemeinde have not received the money still, so they both sent me bills which I had to pay in the end because deadlines were approaching. They told me they understood the situation and that Zurich often does that because they are busy, but I had to pay the taxes before the deadline nonetheless otherwise I would be fined. They would then refund me the taxes once they received the money from Zurich.

Now it's been a month, and I still have not received a refund. So Zurich has been holding money which isn't theirs for over 7 months now.

Is there anything I can do about this?

You pay tax at source in the kanton/municipality you live. Not the where you work.

Please read this document for more information
http://www.steueramt.zh.ch/dam/finan...t_qst12_en.pdf

marton 03.08.2013 00:53

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by kona (Post 1941600)
Thanks for the replies so far.

Sbrinz: I have spoken to my employer (an agency) but they are not helpful. I think they are within their rights to pay the tax in Zurich. I have heard that there are better agencies that are registered in multiple cantons and can pay the tax where you live. If so, I will try changing agency.

Marton: Years?? Please don't say that... Do you pay tax in Zurich, and they just refunded part of the amount because of overpayment? If so this means that had to do some work in your case, i.e. calculate how much tax you owed. I hope my situation is simpler since Zurich doesn't have to calculate anything, they just need to transfer the entire amount to my canton.

yes, that is it

Alemoa 03.08.2013 01:19

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by k_and_e (Post 1941610)
You pay tax at source in the kanton/municipality you live. Not the where you work.

Please read this document for more information
http://www.steueramt.zh.ch/dam/finan...t_qst12_en.pdf


That is in general correct. I live in canton Schwyz and work in canton Zurich. I pay taxes (both source and final) ONLY in canton Schwyz.

My husband's employer however only operates tax at source for cantons Zurich and Geneva so he is being deducted tax at source in Zurich. When he (us) files a tax return, he will be due a refund but that may take a couple years. I know of people who waited 3 years to get a refund.

Check if you can do a "source tax correction". It normally is quicker but I don't know if that would work with you living in a canton and working in another. I could ask my colleagues at work if you wish to know the answer or if nobody else here knows.

Shorrick Mk2 03.08.2013 03:26

Re: Living/working in different cantons and having to pay double tax
 
As paying agent it is the employer's duty to collect tax at the appropriate rate based on your domicile - and also it is its duty to pay it. Forcing the employee to "pay while the employer / canton / whomever figures out where the money went" is borderline illegal.

dannyt986 03.08.2013 17:12

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by Shorrick Mk2 (Post 1941623)
As paying agent it is the employer's duty to collect tax at the appropriate rate based on your domicile - and also it is its duty to pay it. Forcing the employee to "pay while the employer / canton / whomever figures out where the money went" is borderline illegal.

I agree. It's the employers duty to tax you at source based on your canton of residence. I never heard of employers only runing tax at source for certain cantons.

Alemoa 04.08.2013 00:33

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by dannyt986 (Post 1941876)
I agree. It's the employers duty to tax you at source based on your canton of residence. I never heard of employers only runing tax at source for certain cantons.

Citibank does it!

dannyt986 05.08.2013 14:36

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by Alemoa (Post 1942130)
Citibank does it!

This is really bizarre. I dont really have time to look into it, but am very curious if they are allowed to do this.

I had a quick look at SZ's tax at source rules (I know you are referring to ZH), and it is pretty clear that it is the employers duty. http://www.sz.ch/xml_1/internet/de/a...392/p23397.cfm

With the number of foreigners out there living in different cantons, it seems incredible such a loophole would exist.

mary_dobr 10.02.2020 22:59

Re: Living/working in different cantons and having to pay double tax
 
Quote:

Originally Posted by kona (Post 1941587)
This is my first post here, so hello everyone!

I have a question because I am in a difficult situation. I am on a B permit, so sourced at tax. I live in a different canton from where I work, so I think my employer pays the tax in their canton (Zurich), which then has to transfer the money to mine.

The problem is that my canton & gemeinde have not received the money still, so they both sent me bills which I had to pay in the end because deadlines were approaching. They told me they understood the situation and that Zurich often does that because they are busy, but I had to pay the taxes before the deadline nonetheless otherwise I would be fined. They would then refund me the taxes once they received the money from Zurich.

Now it's been a month, and I still have not received a refund. So Zurich has been holding money which isn't theirs for over 7 months now.

Is there anything I can do about this?




Hi,
did you eventually sort it out?


I am likely to appear in the same situation... it's not inspiring to wait for years and years for my 9k being back, as these are the taxes from the whoooole year...


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