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Old 12.06.2018, 18:43
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Quellensteuer vs ordinary taxation: 2 incomes on B permits

Hello

I know things like that have been asked and answered many times, but I would like to confirm my understanding is correct:

Married couple with 2 children living in SZ, both a B permits. One makes >120k per year, the other below.

Employers will notify income >120k to state and in any event pay Quellensteuer for both incomes directly. Each income will be taxed individually at source in category C (married, two incomes).

Income >120k will trigger "nachträgliche Veranlagung", ie effective taxation as one was Swiss.

During "nachträgliche Veranlagung" tax declaration as married couple will mean incomes are added up and taxed as one.

https://www.sz.ch/public/upload/asse...quest_2017.pdf

Is this correct? Or will we be taxed already at source on the basis of one income (but then my employer would need to know the salary of my wife?)

Thanks
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Old 12.06.2018, 18:49
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Re: Quellensteuer vs ordinary taxation: 2 incomes on B permits

You will indeed be taxed as a Swiss person, HOWEVER tax at source will be deducted, then a tax declaration & a final calculation a few years later, so work out if you owe them or they owe you.
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Old 13.06.2018, 08:01
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Re: Quellensteuer vs ordinary taxation: 2 incomes on B permits

Yes, that is clear.

So are you saying what I write is correct? Because this will also define how my Quellensteuer is calculated. My assumption is that each income is taxed at source individually with tariff for married.

What about the kids? Who is getting the C2N tariff, or do both get it? And does it tax-wise matter if the kids are “step children” to one of us?

Thanks again
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Old 13.06.2018, 10:09
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Re: Quellensteuer vs ordinary taxation: 2 incomes on B permits

When annual earned income (Brutto) exceeds CHF 120'000, the source tax becomes a withholding tax (Sicherungssteuer). You and your spouse will then be required to file a joint ordinary income tax return and the source/ withholding tax will be applied to the taxes owed.

You and your spouse should use the source/ withholding tax tariff that applies to your situation and the withheld amounts should then approximate the taxes actually owed as determined by the tax return.


Regarding deductions for children and step-children, this depends on the facts and circumstances of who is paying their support. I would suggest that you review the Ct. Schwyz tax return instructions, section 6.2, for guidance.
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Old 13.06.2018, 12:26
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Re: Quellensteuer vs ordinary taxation: 2 incomes on B permits

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What about the kids? Who is getting the C2N tariff, or do both get it? And does it tax-wise matter if the kids are “step children” to one of us?
Who cares? (*) In your situation tax at source is just a prepayment. If, after tax declaration, your final tax bill is above what you and your wife have paid as tax at source you will get an additional bill. If the final amount is lower you will get a refund.

For ordinary taxation there are just two tariffs, married and non-married. In case you are not separated the whole household income is summed up, deductions subtracted (like kids. You will have to do that your self, the kids and claiming the detuctions) and taxed using the married tariff.

(*) I know there is a difference as the amount you have each month is different which could make a difference in case of an emergency situation or you have means to invest the money in a safe manner with high return.
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