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Old 20.08.2013, 10:54
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Actual Payment of Tax in Zurich - The Confusion Continues.....

As the rule goes in Zurich, if you get paid over CHF 120'000 then you need to fill the tax forms. However, what happens after the forms are filled? Do I pay what I have calculated I owe Zurich or wait for them to verify my calculations and send me a bill?

Also, what's the story if you make less than CHF 120'000 the next year? A colleague of mine had a moving bonus which pushed her over CHF 120'000 the first year & because this wasn't received the next year she was under the threshold. However, she still received a tax form but she was told by HR just to ignore it. Is this right? I expect the same to happen to me next year.

Thanks in advance to any English Forumers who can help
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Old 20.08.2013, 11:09
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

I get around this problem by calculating my taxes and then saving that amount during the year.

Usually you complete the tax return and return it during the first 3 months of the year (In some cantons only 2 months). Then about 6 months later, even 12 months, you get the final account and a demand for the money. If you have saved sensibly, you have nothing to fear.

HR is correct, if you didn't earn over the limit for the tax year with ALL your world income (12 months Jan to Dec), then just ignore the form, even if you completed it, it would be ignored.
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Old 20.08.2013, 11:58
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

I had heard that once you had to file tax returns, you always have to file tax returns.

For payment, you can request a payment slip from your gemeinde (in your case, Zurich: https://www.stadt-zuerich.ch/fd/de/i...ne.secure.html - just note for which year you want the payment slip, or they will just send you a 2013 one). Or you can wait for them to verify the taxes and send you a bill + interest. I still haven't received a reconciliation for my 2011 taxes :P
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Old 20.08.2013, 17:13
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

Thanks a million guys! I have the money put aside for the tax - no problemo. I just want to pay it at this stage. I might request the slip from the Geminde.

Thanks again for all the help
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Old 11.10.2013, 22:25
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

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For payment, you can request a payment slip from your gemeinde (in your case, Zurich: https://www.stadt-zuerich.ch/fd/de/i...ne.secure.html - just note for which year you want the payment slip, or they will just send you a 2013 one). Or you can wait for them to verify the taxes and send you a bill + interest. I still haven't received a reconciliation for my 2011 taxes :P
Can you may be clarify, how big can interest be? Is it better to proactively request the bill or wait? And if we request in advance before they calculated, what are we supposed to pay, estimated amount from our tax calculation? Thx for answering.
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Old 11.10.2013, 23:08
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

Our gap between Quellensteuer and the tax return in Stadt Zurich (two incomes) was about 5000chf. The interest penalty was something like 220chf and it took a really long time (over 6 months) to get the notice of what was owing and then the actual bill. Once we got the bill we sent an email (but were told that a written letter is necessary), and they issued us with new pay-in slips based on a payment plan that we suggested (we had it split over 5 months). In our case it was a back-dated problem going back to 2009! - We are only just putting our 2012 return in now - and they did not even begin to look at 2010 until 2009 was organised and processed, then 2010 and we are currently paying back 2011 and the 2012 is due to be submitted (we got an extension on the submission date), and by then 2011 should be paid and by the time 2012 gets processed (seems to take upwards of 6 months) then 2013 will be due to be put in, I guess...

Hope that makes sense... and yes, once you tip that 120K threshold (in our case it was caused by 50% tuition reduction for three children which is counted as 'taxable' income, plus a small extra amount paid for additional duties).... you are in the system and you have to keep submitting every year.

The gap between Quellensteuer and actual tax due for us is going down each year as our school fee-reduction is going down as our children move from private school to the local system.... but the irony is that the original amount that we were technically over the 120K threshold was 500chf! and for that we get an additional tax amount, every, year, of between 4000-5000chf.

We went in person to the Stadt tax office in Zurich and they were extremely helpful. The receptionist called someone down from their office to talk to us (in English!) and he was extremely calm and helpful, although as he put it, we can't complain too much as we are now paying what a 'local' pays....

Of course, if you are in a less 'city' area, you may find that you are better off paying the local tax rates vs. Quellensteuer. But in Stadt Zurich/Adliswil/Kilchberg and a few others, you'll quite likely end up owing the tax office more money.

By the way, when we sent in the letter to have the payment plan altered, and when we disputed the paperwork, this delayed the month when the payments were due...

Everyone kept telling us about the 'interest' thing, but to us, we considered the 'interest' fee as the least of our worries - and were also pleasantly suprised when the actual tax due came in a few hundred lower than the tax agent estimate rather than freaked out at the unknown.

I highly recommend speaking to a proper swiss tax advisor and don't rely on your employer's advice...our tax advisor helped us sort out the mess with minimum fuss and no dramas from the tax office side (although I always begin every correspondence with the tax office with...it was not our error...our employer's agent didn't correctly gross up and declare the salary....
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Old 12.10.2013, 09:48
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Re: Actual Payment of Tax in Zurich - The Confusion Continues.....

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Usually you complete the tax return and return it during the first 3 months of the year (In some cantons only 2 months).
In others, 4, 9 (with extension, no problem to get), or even 14 (with several extensions, more difficult but possible).

Anyway, I've always paid less with normal tax than with Quellensteuer.

Tom
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