Hi,



I recently moved to Switzerland, so I will only be a tax resident for 5 months of 2018. In other countries I have lived in, this would lead to being taxed at a lower marginal rate for 2018 (due to the yearly salary being lower).


How does this work in Switzerland, given that I am being taxed at source?




Thank you

You will be taxed at source whilst you earn. Are the months August through December?

You will be taxed each month at the same marginal rate as if you had earned the same for the full year.

Tom

I can indeed confirm this!

Ok, thanks.


Can I file a return at the end of the year to get a tax refund?

You won't be entitled to a refund.

Here in Zurich one indeed can, possible deductions are childcare, money in 2nd and 3rd pillar, some other items as well. Lugano is probably different...

And a lot will depend on the height of the income

In ZH other corrections than the above are child support, over 500CHF tax-deductible donations and if you spent more than 5% of your income on medical costs (not including insurance premiums). Ask your tax office in Lugano.

The OP believes he is paying more tax than necessary as he is not working a full year. Switzerland grosses up earnings so if you work for 1 month you pay 1/12 of a years tax on that money.
I guess he is from the UK where you get £11500 tax free a year if you work a day or 1 month or 1 year.

On what grounds?

Tom

If my actual salary was half of what I make, my tax rate would be much lower because rates are progressive.


For instance, I got a significant tax refund when I left the UK because the witholding was at the 40% bracket, but since I only worked a few months in the UK this year, my actual yearly income was only in the 20% bracket.

Your taxed on monthly earnings on 1/12 the annual rate. This is not the UK

6 months work is 6/12 of annual tax. It's actually very simple & fair.

Got it. Thanks!