 | | 
21.02.2019, 00:13
| Junior Member | | Join Date: Sep 2018 Location: Neuchatel
Posts: 34
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 4 Posts
| | Additional tax at sourcce deduction request
Hi all,
I am B-permit holder, living in Neuchatel, subjected to tax at source.
I would like to claim additional tax deduction, based on this form https://www.ne.ch/autorites/DFS/SCCO...entairesIS.pdf
Is there any one doing this claim before ?
It seems that there is no deduction for mortgage interest anymore ? as I have a house on mortgage abroad.
Also, can I claim deduction for lunch, commute cost to work ? if so, there is no space in the form to fill up , should I make a cover letter to list those additional deduction ..
Your experience sharing are much appreciated.
Thanks alot.
| 
21.02.2019, 07:58
|  | Roastbeef & Yorkshire mod | | Join Date: Jan 2010 Location: Neuchâtel
Posts: 14,916
Groaned at 309 Times in 265 Posts
Thanked 26,268 Times in 10,586 Posts
| | Re: Additional tax at sourcce deduction request
Did you read the instructions on the site they linked?
It’s a simplified declaration as opposed to a full declaration so only certain things are deductible and you need to provide them with documentary evidence for the deductions.
If you want to declare your mortgage interest you need to make a full declaration but then you would have to declare the value of the property under your assets and either the real ( if you rent it out) or notional ( if you don’t rent it out) rent under your income.
Lunches and travel to work are included on the full declaration form but as they are not on this form I assume they are not taken into account for the simplified one. You could try listing them under ‘autres’ and providing them with evidence for the expense and see what happens but my feeling is that you won’t get anywhere with that one.
| The following 9 users would like to thank Belgianmum for this useful post: | | 
21.02.2019, 08:46
| Newbie 1st class | | Join Date: Aug 2018 Location: Edlibach
Posts: 20
Groaned at 1 Time in 1 Post
Thanked 28 Times in 14 Posts
| | Re: Additional tax at sourcce deduction request
I don't think foreign mortgage interest can be offset against Swiss income tax, only Swiss mortgage interest payments. If you do move to full declaration, bear in mind that the value of your foreign home will be used to calculate the band of your wealth tax as Belgianmum above highlighted (even if the house is exempt), and all your foreign assets and foreign income need to be declared to the Swiss tax authorities and are subject to wealth tax and income tax. So you may find yourself worse off than before, potentially. Source tax is clean and easy.
I also think that if you earn less than CHF 120K a year and do not own a house in Switzerland, as a B permit holder you may not be able to make a full tax declaration, rather than being subject to source tax or completing the simplified declaration that you linked.
| This user would like to thank hongkonghorsey for this useful post: | | 
21.02.2019, 08:56
|  | Roastbeef & Yorkshire mod | | Join Date: Jan 2010 Location: Neuchâtel
Posts: 14,916
Groaned at 309 Times in 265 Posts
Thanked 26,268 Times in 10,586 Posts
| | Re: Additional tax at sourcce deduction request | Quote: | |  | | | I don't think foreign mortgage interest can be offset against Swiss income tax, only Swiss mortgage interest payments. If you do move to full declaration, bear in mind that the value of your foreign home will be used to calculate the band of your wealth tax as Belgianmum above highlighted (even if the house is exempt), and all your foreign assets and foreign income need to be declared to the Swiss tax authorities and are subject to wealth tax and income tax. So you may find yourself worse off than before, potentially. Source tax is clean and easy.
. | | | | | Unless things have changed recently it is perfectly acceptable to declare foreign mortgage interest on a Swiss tax form. We did it for years until we sold our property in Belgium.
| The following 5 users would like to thank Belgianmum for this useful post: | | 
21.02.2019, 09:18
|  | Moderately Dutch | | Join Date: May 2011 Location: Zurich
Posts: 12,767
Groaned at 406 Times in 344 Posts
Thanked 17,194 Times in 7,842 Posts
| | Re: Additional tax at sourcce deduction request | Quote: | |  | | | I don't think foreign mortgage interest can be offset against Swiss income tax, only Swiss mortgage interest payments. | | | | | | Quote: | |  | | | Unless things have changed recently it is perfectly acceptable to declare foreign mortgage interest on a Swiss tax form. We did it for years until we sold our property in Belgium. | | | | |
It works fine as well in Kanton Zurich to deduct the mortgage interest on a foreign property. Have been doing this for years.
| The following 4 users would like to thank roegner for this useful post: | | 
21.02.2019, 15:06
| Newbie 1st class | | Join Date: Aug 2012 Location: Neuchâtel
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 8 Times in 6 Posts
| | Re: Additional tax at sourcce deduction request
As other posters commented, in order to file and claim for the type of additional tax relief you are looking for (mortgage interest) you will almst certainly need to submit the full tax declaration form. The simple tax form is not appropriate for that purpose, even with a cover letter. Everything that can be claimed will have a place somewhere on that form, as well as space for explanation if necessary.
I think the best thing to do here is to download the official Neuchatel Tax program (called Clic'n'Tax), fill it in and look at what it calculates your direct tax to be. You can then decide, based on whether this is higher or lower than your current impots a la source, whether or not it's worth filing a declaration. The application may be directly downloaded from: https://www.ne.ch/autorites/DFS/SCCO...hargement.aspx
It is worth noting however that although the full tax form will allow you to claim things such as lunch and commuting expenses explicitly, the impots a la source tax rate is actually already an adjusted full tax rate which is supposed to already take account of most typical expenses such as these, which have hard cut-offs on the full tax form, so don't get your hopes up.
| The following 2 users would like to thank SlaveII for this useful post: | | 
21.02.2019, 20:11
| Forum Veteran | | Join Date: Jan 2017 Location: St Gallen
Posts: 534
Groaned at 44 Times in 29 Posts
Thanked 283 Times in 167 Posts
| | Re: Additional tax at sourcce deduction request
If you own a property abroad almost certainly you are eligible for full tax declaration. There is a wealth limit to be under simplified taxation. Once you cross the wealth limit (poverty line  ), like 100k CHF wealth you are legally subject to full taxation. Commonly people 'forget' to declare that they have the wealth above the treshold  Even if you own a 100k worth property with a mortgage your wealth is 100k for the tax purposes. You can later deduct your mortgage form the tax...
Net outcome is that you may gain something or loose something by switching to the full taxation but the amount on + or - would be less than 1k chf. I would be happy to be on simplified tax even if I would be paying 1k more than I could, because until you are on simplified tax, you are really free, the government knows nothing about you, i.e. you can even 'forget' about something and get by until the day they switch you to the full taxation because you got permit C | This user would like to thank Gramatyka356 for this useful post: | | 
21.02.2019, 23:37
| Junior Member | | Join Date: Sep 2018 Location: Neuchatel
Posts: 34
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 4 Posts
| | Re: Additional tax at sourcce deduction request
I am aware that there may be a full return form but I have not received any, probably I am new.
So I just think of using this short form for additional tax deduction.
You have a good point that I may need to declare the property value and tax band may increase.
Thank you. | Quote: | |  | | | Did you read the instructions on the site they linked?
It’s a simplified declaration as opposed to a full declaration so only certain things are deductible and you need to provide them with documentary evidence for the deductions.
If you want to declare your mortgage interest you need to make a full declaration but then you would have to declare the value of the property under your assets and either the real ( if you rent it out) or notional ( if you don’t rent it out) rent under your income.
Lunches and travel to work are included on the full declaration form but as they are not on this form I assume they are not taken into account for the simplified one. You could try listing them under ‘autres’ and providing them with evidence for the expense and see what happens but my feeling is that you won’t get anywhere with that one. | | | | | | 
21.02.2019, 23:40
| Junior Member | | Join Date: Sep 2018 Location: Neuchatel
Posts: 34
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 4 Posts
| | Re: Additional tax at sourcce deduction request
I don't get any invitation to file the full form deduction, probably because I just started working in last Dec, though my yearly salary will be above the threshold 120k. | Quote: | |  | | | I don't think foreign mortgage interest can be offset against Swiss income tax, only Swiss mortgage interest payments. If you do move to full declaration, bear in mind that the value of your foreign home will be used to calculate the band of your wealth tax as Belgianmum above highlighted (even if the house is exempt), and all your foreign assets and foreign income need to be declared to the Swiss tax authorities and are subject to wealth tax and income tax. So you may find yourself worse off than before, potentially. Source tax is clean and easy.
I also think that if you earn less than CHF 120K a year and do not own a house in Switzerland, as a B permit holder you may not be able to make a full tax declaration, rather than being subject to source tax or completing the simplified declaration that you linked. | | | | | | 
21.02.2019, 23:57
| Junior Member | | Join Date: Sep 2018 Location: Neuchatel
Posts: 34
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 4 Posts
| | Re: Additional tax at sourcce deduction request
Thanks SlaveII, it is a good suggestion to try Clic'n'Tax.
I heard about it but did not know that we can use that software tool to simulate what would be the refundable amount, in our favour or against ? It is really cool if we can try that out before submitting the form.
Officially, to access the full form, one should get the invitation letter from the tax office with some code on that, right ?
In the tool Clic'n'Tax, how or where do I get the: Numero de Classement, and References number ? | Quote: | |  | | | As other posters commented, in order to file and claim for the type of additional tax relief you are looking for (mortgage interest) you will almst certainly need to submit the full tax declaration form. The simple tax form is not appropriate for that purpose, even with a cover letter. Everything that can be claimed will have a place somewhere on that form, as well as space for explanation if necessary.
I think the best thing to do here is to download the official Neuchatel Tax program (called Clic'n'Tax), fill it in and look at what it calculates your direct tax to be. You can then decide, based on whether this is higher or lower than your current impots a la source, whether or not it's worth filing a declaration. The application may be directly downloaded from: https://www.ne.ch/autorites/DFS/SCCO...hargement.aspx
It is worth noting however that although the full tax form will allow you to claim things such as lunch and commuting expenses explicitly, the impots a la source tax rate is actually already an adjusted full tax rate which is supposed to already take account of most typical expenses such as these, which have hard cut-offs on the full tax form, so don't get your hopes up. | | | | | | 
22.02.2019, 07:05
|  | Roastbeef & Yorkshire mod | | Join Date: Jan 2010 Location: Neuchâtel
Posts: 14,916
Groaned at 309 Times in 265 Posts
Thanked 26,268 Times in 10,586 Posts
| | Re: Additional tax at sourcce deduction request | Quote: | |  | | | Thanks SlaveII, it is a good suggestion to try Clic'n'Tax.
I heard about it but did not know that we can use that software tool to simulate what would be the refundable amount, in our favour or against ? It is really cool if we can try that out before submitting the form.
Officially, to access the full form, one should get the invitation letter from the tax office with some code on that, right ?
In the tool Clic'n'Tax, how or where do I get the: Numero de Classement, and References number ? | | | | | You get the number from the tax office, you can’t use Clic and Tax without one. | Quote: | |  | | | I don't get any invitation to file the full form deduction, probably because I just started working in last Dec, though my yearly salary will be above the threshold 120k. | | | | | You only started in December 2018? In that case I wouldn’t bother wasting my time with a tax declaration of any sort.
| The following 2 users would like to thank Belgianmum for this useful post: | | 
22.02.2019, 08:59
| Newbie 1st class | | Join Date: Aug 2018 Location: Edlibach
Posts: 20
Groaned at 1 Time in 1 Post
Thanked 28 Times in 14 Posts
| | Re: Additional tax at sourcce deduction request
Thanks for the correction on foreign property mortgage interest deductability - I never knew that
| This user would like to thank hongkonghorsey for this useful post: | |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | Thread Tools | | Display Modes | Linear Mode |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT +2. The time now is 11:43. | |