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Old 19.03.2018, 07:33
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Tax difference between Quellensteuer and normal tax declaration

Hi all,

I have a question about tax difference between normal declaration mode and Quellensteuer mode(tax at source).
We are foreign couples holding B permit and both are working.
We paid Quellensteuer separately about 12000CHF/year for each person.
Last year, I got a C permit and have to do normal tax declaration and realize that with the same income, I have to paid about 35000CHF tax for two of us, about 50% more then before.
We are normal employee and dont have child, meaning not too much deduction. The income doesn't change.
I am curious that if this is normal to pay more when switching the tax mode.
Any experience? Many thanks
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Old 19.03.2018, 08:28
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Re: Tax difference between Quellensteuer and normal tax declaration

Were you both on tariff C on quellensteuer (married - dual income)?

Have you completed your tax form using your net incomes from your salary certificates? The tax is based on your income after social security and pension payments, as well as a surprising number of other deductions you can claim. Quellensteuer is based on gross income.
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Old 19.03.2018, 08:30
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Re: Tax difference between Quellensteuer and normal tax declaration

are you in a similar situation to the OP in this thread?

What tax at source code were you each on before you switched to making a tax return? Sounds like you and your wife where each on B0. Now you are probably on the correct value of C0. The thread above has useful information.
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Old 19.03.2018, 08:51
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Re: Tax difference between Quellensteuer and normal tax declaration

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What tax at source code were you each on before you switched to making a tax return? Sounds like you and your wife where each on B0. Now you are probably on the correct value of C0. The thread above has useful information.
He is now on regular taxation. There is no C0 or B0 for regular taxation.

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Have you completed your tax form using your net incomes from your salary certificates? The tax is based on your income after social security and pension payments, as well as a surprising number of other deductions you can claim. Quellensteuer is based on gross income.
A rough back envelope calculation shows that the numbers are roughly correct. If he switches from C0 to regular taxation in City of Zurich.

He may have missed one or two deductions or they did not pay into pillar 3a.

But in the grand scheme of things the tax changes from 24k to over 30k.
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Old 19.03.2018, 10:04
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Re: Tax difference between Quellensteuer and normal tax declaration

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are you in a similar situation to the OP in this thread
Kind of. This OP is at a 50:50 income split whereas the other person is at 95:5.
In both situation the tax at source tariff C is not "correct" (in the sense that it gives the same taxation as if regular declared and taxed). I do not know which is the assumed income split for tariff C, could be 60:40. If you diverge from that ideal split you either pay more taxes (95:5 split) or less taxes (50:50 split) than normally.

On top of that. tax at source is a cantonal average, not considering the locale commune tax rate. As the city of Zurich is above the cantonal average you have to pay more when you switch to regular taxation.
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Old 19.03.2018, 12:42
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Re: Tax difference between Quellensteuer and normal tax declaration

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He is now on regular taxation. There is no C0 or B0 for regular taxation.



A rough back envelope calculation shows that the numbers are roughly correct. If he switches from C0 to regular taxation in City of Zurich.

He may have missed one or two deductions or they did not pay into pillar 3a.

But in the grand scheme of things the tax changes from 24k to over 30k.
Yes, We are both switching from C0 to regular taxation.
Also, we didn't pay into pillar 3a.
The tax declaration was done by an taxadvisor. So this means my benefit of Quellensteuer is gone???
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