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Old 14.04.2015, 12:26
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Tax implications_Outplacement Services

Dear all
as part of a separation package I have accepted outplacement services granted by my Employer, the thing is they says that the cost will be part of my social and taxable salary.

Although the situation may differs in every Country, the general rule is that provided the payment is made directly by the employer to the provider of the Outplacement services it should have neutral tax consequences for the beneficiary thus they should not include this payments in any payroll

I would appreciate whether someone can bring some light to this question (apologies if the question have been discussed before), if possible within this week

Thanks!
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Old 14.04.2015, 13:14
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Re: Tax implications_Outplacement Services

I used an outplacement service ten years ago, so things might have changed, but I really don't recall I took any kind of tax hit, so I assume it was not treated as part of my salary.
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Old 14.04.2015, 13:26
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Re: Tax implications_Outplacement Services

thanks for your input!, appreciate if other members having more recent experience of awareness could bring additional insight
cheers
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Old 16.04.2015, 11:01
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Re: Tax implications_Outplacement Services

I did avail of outplacement services paid by my ex-employer last year and there was no tax / AHV etc consequences. (I could not find anything confirming this is the correct treatment and it could be easily be that the ex-employer didn't know either and just guessed!)


Agreed that this type of service would often not have any tax implications for the recipient, e.g. it is specifically exempt under Irish tax legislation (subject to limits) but I do not know with certainty about Swiss tax..
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Old 16.04.2015, 11:52
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Re: Tax implications_Outplacement Services

Thanks Feen for the info!, this is what I figured out,

The thing is my HR says they have to include this service on the last payroll run "for tax and social contributions" implications, which I obviously do not agree,

Would you be so kind to check out in your last payroll whether your former employer make some short of reference to this service?

thanks in advance
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Old 16.04.2015, 12:52
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Re: Tax implications_Outplacement Services

You can only be sure, and have a good argument, by visiting the Zurich tax office and asking them for taxation references.
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Old 16.04.2015, 13:08
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Re: Tax implications_Outplacement Services

thanks Sbrinz, I checked with a tax advisor and he is of the same opinion, nevertheless you are right the direction from the Zurich tax office should be the valid input.
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Old 16.04.2015, 13:11
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Re: Tax implications_Outplacement Services

Agreed with Sbrinz, I can only share my circumstances but have to legislative back-up for them


There was definitely no reference to these services in either my last payslip or year-end salary statement
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Old 16.04.2015, 13:18
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Re: Tax implications_Outplacement Services

okay, appreciate much you are sharing your own experience.
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Old 17.04.2015, 10:51
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Re: Tax implications_Outplacement Services

I had today the opportunity to check the subject with one officer at the Zürich Steueramt office and it seems the Kanton became more restrictive on the "interpretation" of the tax implications for the outplacement services even when paid directly by the employer, he says this cost must be included on a complementary payslip and the individual and consolidated on the taxable income so exactly the same input I got from the Company,

It seems the rule remains unchanged but from 2015 they are tighting the slash and apply in full extent the norm which was not the case in previous years, the officer told me that he is aware that other Kantons are still more flexible on this particular.
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Old 17.04.2015, 11:00
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Re: Tax implications_Outplacement Services

3 of the top 5 threads are on tax. must be Tax Friday.
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