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-   -   Tax statement for foreigners (https://www.englishforum.ch/finance-banking-taxation/289064-tax-statement-foreigners.html)

loukaskom 07.01.2019 21:11

Tax statement for foreigners
 
Good afternoon to everyone,

I am new to Switzerland (just completed 4 months of living and working here), so I try to figure out what is going on with tax statements for people coming from abroad.
I hold a residence permit, type B and I work 100% in a company in Valais. I have 3 basic questions.
1) Do I need to submit a tax statement or are taxes automatically substracted from my income?
2) If I need to submit a tax statement, when is the period to do so?
3) Is it a difficult procedure? Would I be able to do it alone?

Kind regards,
Loukas

Medea Fleecestealer 07.01.2019 21:42

Re: Tax statement for foreigners
 
If you don't earn more than 120k a year then you don't need to fill in a form because you're taxed at source, i.e. it comes out of your pay packet before you get it.

If more than 120k, then yes you will and the tax year runs from 1st January to 31st December so you would just do it for the period you were here for.

It's not too difficult. I do ours each year.

loukaskom 09.01.2019 21:54

Re: Tax statement for foreigners
 
Thank you very much for the answer. I would like to ask also (if you are aware), as I am putting money on a 3a pillar account, I know that I should receive some money back from taxes.
This will happen automatically or do I need to submit some form or something?

Kind regards,
Loukas

fatmanfilms 09.01.2019 22:06

Re: Tax statement for foreigners
 
Quote:

Originally Posted by loukaskom (Post 3028851)
Thank you very much for the answer. I would like to ask also (if you are aware), as I am putting money on a 3a pillar account, I know that I should receive some money back from taxes.
This will happen automatically or do I need to submit some form or something?

Kind regards,
Loukas

You may be able to do a claim for the 3a pillar, through I don't think that is guaranteed. You need to get this done by 31 March.

erikdebest 10.01.2019 06:46

Re: Tax statement for foreigners
 
Here are the forms you need:
https://www.vs.ch/de/web/scc/quelle

Antrag auf revision der quellensteuer 2018.

Indeed, apply before end of March 2019!

shadowguy 12.01.2019 15:07

Re: Tax statement for foreigners
 
Quote:

Originally Posted by Medea Fleecestealer (Post 3028211)
If you don't earn more than 120k a year then you don't need to fill in a form because you're taxed at source, i.e. it comes out of your pay packet before you get it.

If more than 120k, then yes you will and the tax year runs from 1st January to 31st December so you would just do it for the period you were here for.

It's not too difficult. I do ours each year.

Just to clarify - is that only 120k within Switzerland, or do they want to know about worldwide income? I have a co-worker that said you need to include work or rental income from other countries in that number, and I was skeptical...

Cheers,
Scott

Mullhollander 12.01.2019 15:47

Re: Tax statement for foreigners
 
Quote:

Originally Posted by shadowguy (Post 3029676)
Just to clarify - is that only 120k within Switzerland, or do they want to know about worldwide income? I have a co-worker that said you need to include work or rental income from other countries in that number, and I was skeptical...


It depends on the canton:


Aargau: if taxpayer, subject to source tax, has more than CHF 120'000 income in CH, then source tax becomes a withholding tax (Sicherungssteuer) and an ordinary tax return must be filed including world-wide income and assets. See p. 11:


https://www.ag.ch/media/kanton_aarga...15_A5_def2.pdf



Zurich: if source-tax taxpayer has income not subject to source tax exceeding CHF 2'500 and/or assets exceeding CHF 200'000, then the "extended assessment" process (ergänzende Veranlagung) to tax these amounts occurs. See pp. 1-2:


https://www.steueramt.zh.ch/dam/fina...eranlagung.pdf

Gramatyka356 12.01.2019 18:18

Re: Tax statement for foreigners
 
Until you receive a letter that you have to fill the tax it is best to sit quiet comfortably :msncool: As a permit B holder you are taxed at source, though for many intricate reasons you may be required to fill the tax return which will only increase your taxes if you are single. Welcome to Switzerland :msntongue:

st2lemans 12.01.2019 18:21

Re: Tax statement for foreigners
 
Quote:

Originally Posted by Gramatyka356 (Post 3029730)
you may be required to fill the tax return which will only increase your taxes if you are single

Actually, it could also reduce them. :rolleyes:

Tom

loukaskom 13.01.2019 12:45

Re: Tax statement for foreigners
 
Thank you all guys for the answers. So I believe I receive somekind of letter after March for the "tax report" for 2018?

aSwissInTheUS 13.01.2019 13:10

Re: Tax statement for foreigners
 
Quote:

Originally Posted by shadowguy (Post 3029676)
Just to clarify - is that only 120k within Switzerland, or do they want to know about worldwide income? I have a co-worker that said you need to include work or rental income from other countries in that number, and I was skeptical...

If you are invited to do a full tax return (Swiss income > 120k, For Geneva resident it is >500k) then all worldwide income will be taxed.

If you are taxed at source and have income from abroad you must declare them voluntarily using the appropriate form (Neuveranlagung der Quellensteuer). Some cantons send this form each and every year, in some other cantons you must act on your own.

For Canton Valais see specially this leaflet:
https://www.vs.ch/documents/508074/6...3-6270fe1d31c9

If in doubt contact the local tax authority.

Gramatyka356 13.01.2019 19:03

Re: Tax statement for foreigners
 
Quote:

Originally Posted by loukaskom (Post 3029860)
Thank you all guys for the answers. So I believe I receive somekind of letter after March for the "tax report" for 2018?

Don't count on the system being efficient. They are going to review each tax payer they have in their database but that takes time. Supposing you fall into the full taxation, but you sit quiet happy with the simplified taxation, you may receive the letter anywhere within a year or two or never

omoyano 14.01.2019 14:48

Re: Tax statement for foreigners
 
Hi!

Someone has > 120k year with permit B? And live in Fribourg kanton?

I have the same problem....I pay "taxed source".

I don't know if is better pay taxed source or normal taxed?
I think I pay more tax with the source tax? with the normal tax the tax is different in each town?

Someone with experience in this?

thanks

venetian 14.01.2019 17:49

Re: Tax statement for foreigners
 
Quote:

Originally Posted by loukaskom (Post 3029860)
Thank you all guys for the answers. So I believe I receive somekind of letter after March for the "tax report" for 2018?

If you are taxed at source you will get no letter; you must know about the possibility of tax deduction and apply BEFORE end of March.

If you did any 3rd pillar contribution before the end of 2018, then at the end of January / beginning of February you should receive an official paper letter from your 3rd pillar institution with your yearly statement (proof of contribution). You have to attach that to the tax deduction form.
I suggest to do that, you can get a few hundred back and that's always nice. Actually, get the 3rd pillar deduction back is usually the main reason for doing the tax refund claim when you are taxed at source.

Note: end of March is the deadline for the office to receive the documents, not for you to send them ;)

aSwissInTheUS 14.01.2019 17:58

Re: Tax statement for foreigners
 
Quote:

Originally Posted by omoyano (Post 3030246)
Someone has > 120k year with permit B? And live in Fribourg kanton?

I have the same problem....I pay "taxed source".

I don't know if is better pay taxed source or normal taxed?
I think I pay more tax with the source tax? with the normal tax the tax is different in each town?

You have no say about if you have the to do the full declaration or remain solely on tax at source. As income is >120 k expect a full declaration.

If it is "better" to be taxed at source or normally taxed depends on many situation. Tax at source is an average tax level for the whole canton and assumes flat rate deductions. If commune has a lower tax rate you and/or your actual deductions are higher than the assumed flat rate you will "win".

Download the FriTax Software and start playing with it:
https://www.fr.ch/de/kstv/steuern-ge...ritax-download

loukaskom 14.01.2019 18:21

Re: Tax statement for foreigners
 
You are right. I am holding residence permit B and my annual income is <120k. So I am taxed at source. For 2018, I didn't do any 3a pillar contribution, but I will contribute some money this year (probably the max limit).
So from everything you explained, I believe I will submit a tax deduction next year before March to receive some money back (if possible).

nasa2000 15.01.2019 06:17

Re: Tax statement for foreigners
 
Quote:

Originally Posted by loukaskom (Post 3028202)
Good afternoon to everyone,

I am new to Switzerland (just completed 4 months of living and working here), so I try to figure out what is going on with tax statements for people coming from abroad.
I hold a residence permit, type B and I work 100% in a company in Valais. I have 3 basic questions.
1) Do I need to submit a tax statement or are taxes automatically substracted from my income?
2) If I need to submit a tax statement, when is the period to do so?
3) Is it a difficult procedure? Would I be able to do it alone?

Kind regards,
Loukas

.... additionally.. be informed that generally speaking you can also deduct the following (list not exclusive) from your taxes even if are you taxed at source:

Health care costs
Church tax (if applicable)
Child care costs, in case of a single parent or if both parents are working

Refer to documents from your local tax office, they’d outline what you can deduct.

Best

Clocker 15.01.2019 06:49

Re: Tax statement for foreigners
 
Quote:

Originally Posted by Medea Fleecestealer (Post 3028211)
If you don't earn more than 120k a year then you don't need to fill in a form because you're taxed at source, i.e. it comes out of your pay packet before you get it.

Unless you are self-employed and this was declared to the authorities, have other sources of income which you want to declare or have a large amount of wealth generating income/interest.

Gramatyka356 15.01.2019 15:12

Re: Tax statement for foreigners
 
Quote:

Originally Posted by nasa2000 (Post 3030394)
.... additionally.. be informed that generally speaking you can also deduct the following (list not exclusive) from your taxes even if are you taxed at source:

Health care costs
Church tax (if applicable)
Child care costs, in case of a single parent or if both parents are working

Refer to documents from your local tax office, they’d outline what you can deduct.

Best

What kind of Health care costs can be deduced? In Switzerland health insurance is obligatory so no health costs. Is it the amount of your franchise or is it about "so-so health" expenses like going for vacation to an exclusive SPA?

loukaskom 06.03.2019 08:44

Re: Tax statement for foreigners
 
Good morning everyone,

After the discussion in this thread, some time ago I received the tax declaration documents from the local tax office.
They inform me that for B permit holders, if you basically don't have any other income (rents and other sources listed in the document), you are not obliged to fill a tax declaration.
They ask me though to only sign the form and send it back with my salary statements. So the question is, should I sign only the form regarding income or all the forms (regarding property etc)?

P.S: I can upload the document if anyone needs it. Or the link to find it.

Regards,
Loukas


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