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Old 23.03.2016, 17:27
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Quellensteuer much lower than the normal way?

To make a long story short I have paid Quellensteuer on part of my income but not the other part, so I must file the normal way so they can, I guess, send me a bill for the difference.

I live in Baden, Aargau, everything is quite ordinary otherwise. Basically from EasyTax in the end I have a taxable income of 58,600 and it says I will owe 6,704 for Kanton+Gemeinde, and 692 for Federal... so that's 7,396, or 12.6% (!!).

If I use the Comparis Quellensteuer calculator I get 7%, and the Quellensteuer I paid on part of my income was about 6% (slightly lower rate because it was not my full salary).

If I use the Comparis normal tax calculator thing, it gives almost exactly the same 12.6% for Baden, and the min/max for the Canton is apparently 10.7% and 14.2% ... so how was the Quellensteuer so much lower? Basically switching from Quellensteuer to the normal way means it will cost me an extra 3k or so! Am I missing something?

Any advice would be greatly appreciated!
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Old 23.03.2016, 17:35
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Re: Quellensteuer much lower than the normal way?

Quellensteuer keeps things simple, so you pay one rate per Canton. Depending on where exactly you live in said canton can you be getting a good or bad deal. Zurich city is at 122% of the average Canton ZH tax, so Quellensteuer is a bargain. If you live in one of the expensive places along the gold coast is the rate some 80-90% of the average, so Quellensteuer is a bad deal. Same seems true for your case, sorry...
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Old 23.03.2016, 17:47
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Re: Quellensteuer much lower than the normal way?

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Quellensteuer keeps things simple, so you pay one rate per Canton. Depending on where exactly you live in said canton can you be getting a good or bad deal. Zurich city is at 122% of the average Canton ZH tax, so Quellensteuer is a bargain. If you live in one of the expensive places along the gold coast is the rate some 80-90% of the average, so Quellensteuer is a bad deal. Same seems true for your case, sorry...
Yes but like I wrote the max and min for Aargau is 10.7% and 14.2% , and my Quellenstuer would come to 6-7%, way outside that range (based on both the Comparis estimate and my actual rate in the past).
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Old 23.03.2016, 17:54
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Re: Quellensteuer much lower than the normal way?

As always, it varies from Kanton to Kanton and for tax even for each Gemeinde. But I do know several friends whose Quellensteuer worked out cheaper (e.g. in Zurich) than the standard tax rate. If you live in a tax-attractive commune, the reverse will be true.
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Old 23.03.2016, 18:00
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Re: Quellensteuer much lower than the normal way?

Tax rates are progressive.

"I have paid Quellensteuer on part of my income but not the other part"

So, if you pay 7% on part of your income, you will pay a higher rate on the total.

Tom
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Old 23.03.2016, 18:07
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Re: Quellensteuer much lower than the normal way?

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Tax rates are progressive.

"I have paid Quellensteuer on part of my income but not the other part"

So, if you pay 7% on part of your income, you will pay a higher rate on the total.

Tom
Yes, but the Comparis calculation was based on the full amount, and the "Quellensteuer" part was around 3/4 of the total so the rate will not change dramatically, I also have values closer to the full amount in the past to compare with and it's all in the range of roughly 6-8%, far from the "normal" rate given by both Comparis and EasyTax.
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Old 23.03.2016, 18:11
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Re: Quellensteuer much lower than the normal way?

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As always, it varies from Kanton to Kanton and for tax even for each Gemeinde. But I do know several friends whose Quellensteuer worked out cheaper (e.g. in Zurich) than the standard tax rate. If you live in a tax-attractive commune, the reverse will be true.
Yes I realize it varies, but all numbers were considering only my Kanton, Aargau, and I also checked the max and min within that Kanton, so to me it really makes no sense at the moment.
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Old 23.03.2016, 20:59
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Re: Quellensteuer much lower than the normal way?

Don't rock the boat, and be grateful. In your position it is up to the employer to collect the income tax from you, and pass it on to the city. If they don't ask for it, don't offer to pay for it. Recommend opening a savings account and save the 50% tax you are not paying.
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Old 23.03.2016, 21:10
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Re: Quellensteuer much lower than the normal way?

That's why I listen to Greenslade while filling in the tax return.

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Tax rates are progressive.
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Old 23.03.2016, 21:31
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Re: Quellensteuer much lower than the normal way?

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Don't rock the boat, and be grateful. In your position it is up to the employer to collect the income tax from you, and pass it on to the city. If they don't ask for it, don't offer to pay for it. Recommend opening a savings account and save the 50% tax you are not paying.
I skipped some details because I don't consider them relevant to the fundamental issue (that is, Quellensteuer in this case being far less than the normal tax rate, regardless of the partial payment thing). Anyway, in this case the employer is in the US, though because my residence is in Switzerland I do not pay US income tax, but rather Swiss income tax, and it's my responsibility to appropriately declare and pay tax on that income to Switzerland (not the employer's responsibility). And yes I could simply not declare it and hope for the best, but in addition to obvious ethical issues with that there's a risk of major negative consequences compared to a pretty modest short term financial gain.
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Old 24.03.2016, 07:48
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Re: Quellensteuer much lower than the normal way?

To compare deduct 12k from your net income & see how the normal tax looks, probably very close to the Quellensteuer rate.
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Old 24.03.2016, 09:26
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Re: Quellensteuer much lower than the normal way?

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To compare deduct 12k from your net income & see how the normal tax looks, probably very close to the Quellensteuer rate.
I did this, the problem is the same, with Quellensteuer it's about 4% (both in reality and with Comparis), and with the normal way it's about 8% (with both EasyTax and Comparis).
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