Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 20.05.2019, 17:40
Newbie 1st class
 
Join Date: Mar 2019
Location: Cork
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
mmurray has no particular reputation at present
Tax rate for unmarried couples

New in zurich and took quite a hit tax wise because my partner and I are unmarried. We have 2 small children. Apart from getting married is there any tax efficient way to mitigate this, could I pretend to be married ? My partner doesn't work.
Reply With Quote
  #2  
Old 20.05.2019, 17:43
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 8,856
Groaned at 305 Times in 252 Posts
Thanked 9,690 Times in 4,889 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Tax rate for unmarried couples

Quote:
View Post
New in zurich and took quite a hit tax wise because my partner and I are unmarried. We have 2 small children. Apart from getting married is there any tax efficient way to mitigate this, could I pretend to be married ? My partner doesn't work.

Check out first what it costs tax wise when you do marry.... If your partner wants to stay at home, that could have a tax benefit.


And no, pretending doesn´t work.
Reply With Quote
The following 2 users would like to thank roegner for this useful post:
  #3  
Old 20.05.2019, 19:28
Forum Veteran
 
Join Date: Dec 2012
Location: Aargau
Posts: 2,177
Groaned at 11 Times in 10 Posts
Thanked 2,791 Times in 1,282 Posts
Mullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond repute
Re: Tax rate for unmarried couples

Although you are likely subject to source tax withholding, to understand your situation better, could you indicate:


1. Source tax classification code
2. Whether you are required to file a Swiss tax return (nachträgliche ordentliche Veranlagung)
3. The canton where you reside
4. Whether you live with your partner and children
Reply With Quote
  #4  
Old 20.05.2019, 19:40
Newbie 1st class
 
Join Date: Mar 2019
Location: Cork
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
mmurray has no particular reputation at present
Re: Tax rate for unmarried couples

Sure, thx Mullhollander

1. is this the avh number? It's 756.xxxx.xxxx.xx
2. Not this year as won't reach 120k threshold. Will have to next year.
3. Currently registered in Adliswil (moving to Hegingen next month)
4. Will be in October.

Quote:
View Post
Although you are likely subject to source tax withholding, to understand your situation better, could you indicate:


1. Source tax classification code
2. Whether you are required to file a Swiss tax return (nachträgliche ordentliche Veranlagung)
3. The canton where you reside
4. Whether you live with your partner and children
Reply With Quote
  #5  
Old 20.05.2019, 20:00
Forum Veteran
 
Join Date: Dec 2012
Location: Aargau
Posts: 2,177
Groaned at 11 Times in 10 Posts
Thanked 2,791 Times in 1,282 Posts
Mullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond repute
Re: Tax rate for unmarried couples

1. Your source code tarif, e.g. A2 (with or without church tax)

2. Would it reach 120k threshold annualized?
- Even if you earned less than 120k annualized, you would need to file a tax return if you have investment income of more than CHF 2'500 and/ or net assets exceed CHF 200'000.
3. Canton Zurich
4. If you are providing for your children while abroad, this normally can count as a deduction.



2. above is important since it might be beneficial for you to file a tax return.



For those who are subjec to source tax but do not file a tax return, it is normally possible to "correct" source tax by filing an Antragsformular für eine Korrekturberechung der Quellensteuer, but that was due 31 March 2019 for 2018. See post 14 at this link for more information on that process:


https://www.englishforum.ch/finance-...kanton-zh.html
Reply With Quote
  #6  
Old 20.05.2019, 20:28
Newbie 1st class
 
Join Date: Mar 2019
Location: Cork
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
mmurray has no particular reputation at present
Re: Tax rate for unmarried couples

Ok, great info. I have an agency but they are slow/lazy when I ask about these things. I pay alot for family at home so obviously will look at how this could be used.
Reply With Quote
  #7  
Old 20.05.2019, 20:50
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,056
Groaned at 290 Times in 239 Posts
Thanked 15,603 Times in 8,680 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Tax rate for unmarried couples

Quote:
View Post
Sure, thx Mullhollander

1. is this the avh number? It's 756.xxxx.xxxx.xx
2. Not this year as won't reach 120k threshold. Will have to next year.
3. Currently registered in Adliswil (moving to Hegingen next month)
4. Will be in October.
It's 10k a month threshold, 120k if you work a full year.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #8  
Old 21.05.2019, 11:43
Mica's Avatar
Forum Veteran
 
Join Date: Oct 2007
Location: Zurich
Posts: 769
Groaned at 1 Time in 1 Post
Thanked 991 Times in 434 Posts
Mica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond repute
Re: Tax rate for unmarried couples

You might want to look into (but confirm with a tax advisor, laws may have changed):
- possibility of paying your partner alimony. This should lead to a reduction of your income and increase of your partners income. Since you are taxed separately this leads to an overall reduction of tax burden;
- contribution to health insurance premium. The non-working partner may be entitled to a contribution to the health insurance premiums.

see http://mit-uns-fuer-uns.ch/blog/steu...-legale-tricks (but note that the article is quite old).
Reply With Quote
  #9  
Old 21.05.2019, 18:57
Newbie 1st class
 
Join Date: Mar 2019
Location: Cork
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
mmurray has no particular reputation at present
Re: Tax rate for unmarried couples

Quote:
View Post
You might want to look into (but confirm with a tax advisor, laws may have changed):
- possibility of paying your partner alimony. This should lead to a reduction of your income and increase of your partners income. Since you are taxed separately this leads to an overall reduction of tax burden;
- contribution to health insurance premium. The non-working partner may be entitled to a contribution to the health insurance premiums.

see http://mit-uns-fuer-uns.ch/blog/steu...-legale-tricks (but note that the article is quite old).
That's really good info - my agency's did mention something like this but their attitude was meh too much trouble for them. I'm going to source a tax-advisor (recommendations?) - will update this thread when I have more info.
Reply With Quote
  #10  
Old 21.05.2019, 23:32
Forum Legend
 
Join Date: Oct 2014
Location: Ostschweiz
Posts: 7,645
Groaned at 253 Times in 216 Posts
Thanked 9,207 Times in 4,836 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Tax rate for unmarried couples

Quote:
View Post
You might want to look into (but confirm with a tax advisor, laws may have changed):
- possibility of paying your partner alimony. This should lead to a reduction of your income and increase of your partners income. Since you are taxed separately this leads to an overall reduction of tax burden;

see http://mit-uns-fuer-uns.ch/blog/steu...-legale-tricks (but note that the article is quite old).
That kind of arrangement within the household, especially with the couple having kids, simply won't fly.
Reply With Quote
  #11  
Old 21.05.2019, 23:49
Newbie 1st class
 
Join Date: Mar 2019
Location: Cork
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
mmurray has no particular reputation at present
Re: Tax rate for unmarried couples

I hear ye, just making sure I get what I'm entitled to. Coming form Ireland I'm more than happy to pay the tax rates here.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax rate for unmarried couple In the dark Finance/banking/taxation 7 23.06.2017 08:25
Which cantons recognize unmarried partnerships for heterosexual couples? Adry Permits/visas/government 21 14.11.2015 15:21
Witholding tax Tariffs for married couples jukes Finance/banking/taxation 11 20.10.2015 17:45
Income taxes for married couples vs cohabiting couples alaind Finance/banking/taxation 2 29.05.2009 23:19
Tax calculation for Working married couples wildboar Finance/banking/taxation 8 06.06.2008 17:45


All times are GMT +2. The time now is 04:15.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0