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Old 14.04.2008, 13:46
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Calculation of taxes for 2007 when arrived during 2007

Hello all,
I have a question about the 2007 taxes.

I live in Geneva with my partner who has moved here during 2007 and only worked 3 and half months. We are taxed as a married couple...

We declared her actual salary for those 3 and half months and when we received the final tax decision, we noticed that for calculation they have increased her income (as well as her deductions).

We are wondering why is it so and how do they calculate such a thing?

The tax office explained that since she arrived during the year they had to make the amount a 12 months one and not 3.5 months... But although I might understand the concept (well, it seems strange to me, they increase your actual earned income in Switzerland), I can't seem to work the numbers...

Anyone can offer some help?

Thanks
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Old 14.04.2008, 14:48
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Re: Calculation of taxes for 2007 when arrived during 2007

It sounds like nonsense. Yes allowances are for 12 months, but income is income and cannot be increased. I'd go back to them...
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Old 14.04.2008, 16:46
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Re: Calculation of taxes for 2007 when arrived during 2007

Yeah it sounds nonsense to me, but can't seem to get a clear explanation on the phone... I will try to go down to the office but their opening hours are not the best, hence my question on the forum.

Thanks
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Old 18.04.2008, 21:22
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Re: Calculation of taxes for 2007 when arrived during 2007

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Hello all,
I have a question about the 2007 taxes.

I live in Geneva with my partner who has moved here during 2007 and only worked 3 and half months. We are taxed as a married couple...

We declared her actual salary for those 3 and half months and when we received the final tax decision, we noticed that for calculation they have increased her income (as well as her deductions).

We are wondering why is it so and how do they calculate such a thing?

The tax office explained that since she arrived during the year they had to make the amount a 12 months one and not 3.5 months... But although I might understand the concept (well, it seems strange to me, they increase your actual earned income in Switzerland), I can't seem to work the numbers...

Anyone can offer some help?

Thanks
The actual income is scaled up to the equivalent annual income, from which the annual allowances are deducted, to obtain the equivalent annual taxable income, which determines the tax rate. That tax rate is then applied to the actual income.

Sounds complicated, but that is fair and the only logical way, because the tax rate is neither flat nor linear. Otherwise, no tax would be due, because the actual 3 month income is so low.
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