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Old 16.05.2019, 20:59
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tax rate and basis on unemployment benefits payments

Hello all
I searched the forum but can't find one for my issue.
I live in Geneva and for 2018 my only income was unemployment benefits, the tax was deducted at source. I requested rectification for the tax, only to make the 3rd pillar payment to be considered, with the expectation to get some tax back.

To my surprise, I received an invoice to pay more tax, even they have considered the 3rd pillar, for 2 reasons:

1. The unemployment benefits was paid with only a fix 8% tax deduction(barème/Category D), while the tax authority used a higher rate (barème/Category A), I would be subjected to this rate if it was salary from work.
2. They used "Taggelder/indemnites journalieres"(which is the biggest amount before the deduction of AHV/AVS etc) on my revenue certificate as basis instead of using a smaller number under the column "Steuerbarer Betrag/Montant imposable", if it was salary I guess it is normal to use the amount BEFORE AHV/AVS etc deduction, but the French word "Montant imposable" literally means "amount to be taxed" so this confuses me.

So my questions are:
1. Do you think the tax rate and basis the tax authority used are correct?
2. If so, would they claim this tax payment if I didn't request rectification of income tax(tax deduction)?

Thank you.
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Old 16.05.2019, 21:09
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Re: tax rate and basis on unemployment benefits payments

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Hello all
I searched the forum but can't find one for my issue.
I live in Geneva and for 2018 my only income was unemployment benefits, the tax was deducted at source. I requested rectification for the tax, only to make the 3rd pillar payment to be considered, with the expectation to get some tax back.

To my surprise, I received an invoice to pay more tax, even they have considered the 3rd pillar, for 2 reasons:

1. The unemployment benefits was paid with only a fix 8% tax deduction(barème/Category D), while the tax authority used a higher rate (barème/Category A), I would be subjected to this rate if it was salary from work.
2. They used "Taggelder/indemnites journalieres"(which is the biggest amount before the deduction of AHV/AVS etc) on my revenue certificate as basis instead of using a smaller number under the column "Steuerbarer Betrag/Montant imposable", if it was salary I guess it is normal to use the amount BEFORE AHV/AVS etc deduction, but the French word "Montant imposable" literally means "amount to be taxed" so this confuses me.

So my questions are:
1. Do you think the tax rate and basis the tax authority used are correct?
2. If so, would they claim this tax payment if I didn't request rectification of income tax(tax deduction)?

Thank you.
1 Yes

2 You did as you wished 3rd pillar to be taken into account.
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Old 18.05.2019, 10:05
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Re: tax rate and basis on unemployment benefits payments

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1 Yes

2 You did as you wished 3rd pillar to be taken into account.
Thanks fatmanfilms, do you know the answer to my 2nd question?
as I only have B permit, tax is deducted at source when I received payment and it is not mandatory for me to request rectification

would they claim this tax payment if I didn't request rectification of income tax(tax deduction)?
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Old 18.05.2019, 10:31
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Re: tax rate and basis on unemployment benefits payments

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would they claim this tax payment if I didn't request rectification of income tax(tax deduction)?
Normally not.

Tom
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Old 18.05.2019, 13:37
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Re: tax rate and basis on unemployment benefits payments

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Thanks fatmanfilms, do you know the answer to my 2nd question?
as I only have B permit, tax is deducted at source when I received payment and it is not mandatory for me to request rectification

would they claim this tax payment if I didn't request rectification of income tax(tax deduction)?
No you asked for a formal calculation & you got one.
Assumed expenses on the tax you pay are large so depending on your actual expenses & the village you live in your expenses were less so you pay more tax.
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Old 18.05.2019, 21:17
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Re: tax rate and basis on unemployment benefits payments

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No you asked for a formal calculation & you got one.
Assumed expenses on the tax you pay are large so depending on your actual expenses & the village you live in your expenses were less so you pay more tax.
just to clarify, I only declared the 3rd pillar payment, I haven't declared any expenses. Hope I have understood you correctly as English is also a foreign language for me.
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Old 18.05.2019, 21:59
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Re: tax rate and basis on unemployment benefits payments

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just to clarify, I only declared the 3rd pillar payment, I haven't declared any expenses. Hope I have understood you correctly as English is also a foreign language for me.
He did. If you ask for a recalculation it will be based on your effective expenses and taxes and not the general tax rate
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Old 19.05.2019, 11:52
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Re: tax rate and basis on unemployment benefits payments

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just to clarify, I only declared the 3rd pillar payment, I haven't declared any expenses. Hope I have understood you correctly as English is also a foreign language for me.
Standard deductions would be in the 10-15k range, it's possible that you just exchanged those for the 3rd pillar contribution.
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Old 19.05.2019, 16:00
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Re: tax rate and basis on unemployment benefits payments

What’s the difference % wise? I assume it’s huge like 10% more right?

Rather unfortunate as the 8% (Barème D) is only possible if you receive your income from an insurance and you are not required to declare your taxes. (The scale doesn’t exist for regular Tax declarations)

Now that you have requested a calculation, I don’t think it’s possible to go back.
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income tax, income tax return, rav benefits, tax deduction, unemployment benefits




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