Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 23.01.2014, 16:02
eru eru is offline
Junior Member
 
Join Date: May 2013
Location: Basel
Posts: 33
Groaned at 4 Times in 3 Posts
Thanked 3 Times in 3 Posts
eru has annoyed a few people around hereeru has annoyed a few people around hereeru has annoyed a few people around here
Is Quellensteuer monthly or yearly tax?

Hi,

I have following question: basically I'm contractor, but have to go thru payroll agency for my projects. The contracts with payroll company are project related and restricted to duration of customers order. Between projects I do nothing (travel) and wait for next project. You could imagine 6 working months in year. I would not use social benefits.

Because source tax is progressive I have to pay quite high taxes during project time and of course no taxes during nothing doing.

For me it would be better to make some kind of yearly tax declaration. I would then flatten my income and probably get a lot of money back.
Is this possible with already payed quellensteuer?
Reply With Quote
  #2  
Old 23.01.2014, 18:51
Bananahead's Avatar
Forum Veteran
 
Join Date: Nov 2006
Location: Zurich
Posts: 533
Groaned at 10 Times in 9 Posts
Thanked 289 Times in 132 Posts
Bananahead has made some interesting contributions
Re: Is Quellensteuer monthly or yearly tax?

Yes simply contact your tax office and ask for a form.
Reply With Quote
  #3  
Old 23.01.2014, 20:31
cinzia_t's Avatar
Member
 
Join Date: Aug 2008
Location: Basel
Posts: 161
Groaned at 3 Times in 2 Posts
Thanked 100 Times in 61 Posts
cinzia_t is considered knowledgeablecinzia_t is considered knowledgeablecinzia_t is considered knowledgeable
Re: Is Quellensteuer monthly or yearly tax?

Hi,

I have seen you are in Basel. If it is Kanton BS this should be the form

http://www.steuer.bs.ch/19009_fw_qst...rrektur_ch.pdf

You can deduct any additional costs you might have (childcare, health costs above a certain threshhold, payments to the 3rd pillar).

The taxes will be calculated on an annual base and a refuund will probably be sent to you. Based on the normal tax declaration processing times, do not expect to eceive a reply before 4-6 months.
Reply With Quote
  #4  
Old 24.01.2014, 10:44
eru eru is offline
Junior Member
 
Join Date: May 2013
Location: Basel
Posts: 33
Groaned at 4 Times in 3 Posts
Thanked 3 Times in 3 Posts
eru has annoyed a few people around hereeru has annoyed a few people around hereeru has annoyed a few people around here
Re: Is Quellensteuer monthly or yearly tax?

Thanks for your replies.

I do not have any additional expenses, my point is: I have big differences in my salary during the year. But source tax seems to depend on your current monthly salary, not total annual income.

I've asked tax authorities in Basel Land: they told me the same, Quellensteuer is a monthly tax, not annual. There seems to be impossible to get a "fair" taxation percentage resulting from your annual income
Reply With Quote
  #5  
Old 24.01.2014, 10:57
Forum Legend
 
Join Date: Jun 2008
Location: Zurich
Posts: 8,285
Groaned at 294 Times in 223 Posts
Thanked 18,977 Times in 6,615 Posts
k_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
Thanks for your replies.

I do not have any additional expenses, my point is: I have big differences in my salary during the year. But source tax seems to depend on your current monthly salary, not total annual income.

I've asked tax authorities in Basel Land: they told me the same, Quellensteuer is a monthly tax, not annual. There seems to be impossible to get a "fair" taxation percentage resulting from your annual income
actually, you can.
once you hit the 120k limit (at least, 120k in Zürich - not sure about Basel) you will be asked to do a tax return and be taxed like a Swiss.
Reply With Quote
This user would like to thank k_and_e for this useful post:
  #6  
Old 24.01.2014, 10:59
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,430
Groaned at 281 Times in 187 Posts
Thanked 18,156 Times in 7,618 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

can you get the company to spread payments over a longer period?
Reply With Quote
  #7  
Old 24.01.2014, 11:10
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 11,066
Groaned at 363 Times in 304 Posts
Thanked 13,909 Times in 6,486 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

My experience is similar, when I get a bonus for example I pay a huge amount of taxes compared to prior "normal" months and the only way to get the taxes back is to file a tax return. I haven´t in Zurich or Schaffhausen found a way to level that out, no.
And as long as you are on a B permit (and not C permit) you will be taxed at source monthly. I haven´t heard of a way to avoid that (not even with a salary over 120k).
Reply With Quote
  #8  
Old 24.01.2014, 11:12
eru eru is offline
Junior Member
 
Join Date: May 2013
Location: Basel
Posts: 33
Groaned at 4 Times in 3 Posts
Thanked 3 Times in 3 Posts
eru has annoyed a few people around hereeru has annoyed a few people around hereeru has annoyed a few people around here
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
actually, you can.
How?
All Antrag's for tax return I've seen are based on additional expenses. There is no chapter "please calculate my source tax again, annually"

Quote:
can you get the company to spread payments over a longer period?
That's true, such a company is hard to find, and if, they want to have more money for payroll
Reply With Quote
  #9  
Old 24.01.2014, 11:17
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 11,622
Groaned at 284 Times in 232 Posts
Thanked 24,774 Times in 10,469 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
can you get the company to spread payments over a longer period?
Or maybe found a company that collects the payments from your clients as the work is done but pays you on a monthly basis.
Reply With Quote
  #10  
Old 24.01.2014, 11:20
Forum Legend
 
Join Date: Jun 2008
Location: Zurich
Posts: 8,285
Groaned at 294 Times in 223 Posts
Thanked 18,977 Times in 6,615 Posts
k_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
How?
All Antrag's for tax return I've seen are based on additional expenses. There is no chapter "please calculate my source tax again, annually"
In a tax return, your taxes are calculated over the year, based on Kanton and Gemeinde.
Paid tax at source is deducted from taxes to be paid. If this results in a negative amount, you will get money back.

So it has no effect on your direct monthly payments but it does have effect on a yearly basis.
Reply With Quote
  #11  
Old 24.01.2014, 14:07
Forum Veteran
 
Join Date: Jan 2013
Location: Vaud
Posts: 505
Groaned at 3 Times in 3 Posts
Thanked 332 Times in 217 Posts
slingb is considered knowledgeableslingb is considered knowledgeableslingb is considered knowledgeable
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
Hi,

I have following question: basically I'm contractor, but have to go thru payroll agency for my projects. The contracts with payroll company are project related and restricted to duration of customers order. Between projects I do nothing (travel) and wait for next project. You could imagine 6 working months in year. I would not use social benefits.

Because source tax is progressive I have to pay quite high taxes during project time and of course no taxes during nothing doing.

For me it would be better to make some kind of yearly tax declaration. I would then flatten my income and probably get a lot of money back.
Is this possible with already payed quellensteuer?


Tax at source is BOTH monthly AND annual. At least (in Vaud) and if you work for the same employer and for the whole year.


They calculate the tax every month independently (like they did for you). At the end of the year (in December payslip) they go back, add the monthly salaries together for the year, and re-calculate the tax at source, this time using the annual rates. This results in changes of a couple of a few tens or hundrend chf at best. This calculation helps iron out the imbalance if you got a bonus one month and got taxed higher rate: effectively spreading the bonus over all months, and to even out the salary across the year.

BUT, you cannot apply this to months that you didn't work at all.

This rule also applies to normal taxation. So if you worked only during part of the year, you will be taxed for that part of the year at a rate which corresponds to the FULL YEAR SALARY EQUIVALENT (12 months).

So in your case, if you say you worked for 6 months, and the amounts varied a lot,, the "correct" way will be to add-up the amounts you got in the 6 months, then double that to find the annual equivalent salary, and use that rate of tax at source. You cannot add up the 6 months you worked, and then ask to be taxed at a rate which corresponds to the $ received duing this 6 mothns. But you can get your tax burden down by spreading the payments to more months in the year.

Last edited by slingb; 24.01.2014 at 14:19.
Reply With Quote
  #12  
Old 24.01.2014, 14:34
Mélusine's Avatar
Forum Legend
 
Join Date: Oct 2007
Location: Lutry
Posts: 3,896
Groaned at 32 Times in 27 Posts
Thanked 5,518 Times in 2,220 Posts
Mélusine has a reputation beyond reputeMélusine has a reputation beyond reputeMélusine has a reputation beyond reputeMélusine has a reputation beyond reputeMélusine has a reputation beyond reputeMélusine has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

In his previous job my OH was paid by the hour, which meant that he never earned the same amount at the end of the month, and the tax at source varied accordingly.
Reply With Quote
  #13  
Old 24.01.2014, 15:00
John_H's Avatar
Forum Legend
 
Join Date: May 2013
Location: Up above Nyon
Posts: 4,068
Groaned at 113 Times in 69 Posts
Thanked 5,469 Times in 2,112 Posts
John_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond repute
Re: Is Quellensteuer monthly or yearly tax?

So on the tax at source Vaud etc ..

I reside in VD, work in GE.. Started work 1st Mar 2013 .. I've earned more than 120k . My monthly pay varies due to overtime etc and my tax varies with it.

Will i get sent a tax return or must I go looking for it?
Reply With Quote
  #14  
Old 24.01.2014, 15:55
Forum Veteran
 
Join Date: Jan 2013
Location: Vaud
Posts: 505
Groaned at 3 Times in 3 Posts
Thanked 332 Times in 217 Posts
slingb is considered knowledgeableslingb is considered knowledgeableslingb is considered knowledgeable
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
So on the tax at source Vaud etc ..

I reside in VD, work in GE.. Started work 1st Mar 2013 .. I've earned more than 120k . My monthly pay varies due to overtime etc and my tax varies with it.

Will i get sent a tax return or must I go looking for it?


It's not clear. Tax things are very slow here. On the website, they say you need to tell them and ask for it. They send you a tax return later with different deadlines than the general public. But no harm is generally done if you wait (but may take them 1 year to find out). But in that case, they will send you to do one backdated (so you do 2 in one year). Generally they catch up with you - they may be slow, but they never forget. Also, you cannot simply "fill one" yourself, you need taxpayer numbers etc, that they issue you beforehand.


In your case though, if you earned >120k during Mar-Dec, then you will be a fair amount above 120k (salary-wise), so they may be quicker for you.


What I would do, is first to calculate what the tax will be with the declaration. (they have the online calculator etc, or use an accountant). The formulas, rates and method are VERY different to tax at source.


It's not unusual, depending on your circs, that the tax bill will be several 1000s CHF off!!. SO, if it's going to be a big refund, contact them sooner! If it's going to be a big bill, start saving and wait for them. But it will be what it is, there is no way to avoid, as you don't have a choice of "at source" or "normal taxation". If over 120k in VD, it's the normal taxation...
Reply With Quote
This user would like to thank slingb for this useful post:
  #15  
Old 24.01.2014, 16:14
Junior Member
 
Join Date: Nov 2012
Location: Ittigen BE
Posts: 86
Groaned at 1 Time in 1 Post
Thanked 32 Times in 21 Posts
ozzman1 has no particular reputation at present
Re: Is Quellensteuer monthly or yearly tax?

Quote:
View Post
...
This rule also applies to normal taxation. So if you worked only during part of the year, you will be taxed for that part of the year at a rate which corresponds to the FULL YEAR SALARY EQUIVALENT (12 months).
...
Happened to me. I worked only 2 months in 2012, did not send a tax declaration and was kindly "reminded" by Steuerverwaltung I need to do it because "if I have worked the whole year, I would earn 120k+".
Reply With Quote
This user would like to thank ozzman1 for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
SBB Monthly or Yearly Pass... Geopaice Daily life 3 05.08.2013 18:14
Quellensteuer bearing no relation to tax due as per tax declaration mrkprc Finance/banking/taxation 4 31.12.2011 16:42
Quellensteuer / Tax limit Istebraq Finance/banking/taxation 16 19.08.2011 11:47
Half Yearly TAX Statements when Leaving Switzerland perizma Leaving Switzerland 3 18.08.2011 16:26
Partial Monthly Salary - Full Quellensteuer %? cheshmatt Finance/banking/taxation 1 04.01.2011 11:13


All times are GMT +2. The time now is 10:18.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0