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Old 08.06.2019, 12:37
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Taxation with family

Hi all, new here would like to get some help regarding taxes.

I will be moving to Unterägeri in August. My salary will be 9000chf/month.

My wife and 3 kids 12,16 and 19 will be staying in Sweden for now. Will it be regarded as I have family and married egen though they dont permanently live with me in Switzerland and if so what will that make for my financial status?

And second question is how much can I expect to get net? All my costs are covered as insurances and so.

Thanks in advance and wish you all a nice weekend.
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Old 10.06.2019, 08:51
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Re: Taxation with family

You will likely be coming to Switzerland on a B or L permit and should, therefore, be subject to Canton Zug Quellensteuer (source tax) living in Unterägeri (Zug).


The threshold for filing a tax return when subject to source tax is CHF 120'000, so you appear to be narrowly under the threshold (CHF 9'000 x 12 months = CHF 108'000 or possibly CHF 9'000 x 13 months = CHF 117'000). However, if you have taxable assets greater than CHF 100'000 or unearned income exceeding CHF 2'000, you would need to file a tax return under the EOV process. If you must file a tax return, the source tax becomes a withholding tax and you would be subject to normal rates, etc.



Also, depending on your expenses, you might wish to file a source tax correction (called Tarifkorrektur) by 31 March of the following year to include these extraordinary expenses.


It is not fully clear which source tax classification you would be subject to in Canton Zug. Under Canton Zurich's rules, you would receive a source tax tariff of either Bx or Cx depending on whether your spouse was working. See this decision grid:


https://www.steueramt.zh.ch/dam/fina...ungen_2014.pdf



Deductions from your employee salary aside in addition to source tax would include:
AHV/IV/EO 5.125% (Old age pension, invalidity insurance)
ALV 1.1% (Unemployment insurance)
Pillar II pension: this will depend on the employer's pension plan but, say, 8% (this would include long-term disability, old-age savings)

Short-term disability: this will depend on the employer's disability insurance but, say, 0.5%.



Your HR department might be able to assist you with the above.
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Old 10.06.2019, 10:31
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Re: Taxation with family

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You will likely be coming to Switzerland on a B or L permit and should, therefore, be subject to Canton Zug Quellensteuer (source tax) living in Unterägeri (Zug).


The threshold for filing a tax return when subject to source tax is CHF 120'000, so you appear to be narrowly under the threshold (CHF 9'000 x 12 months = CHF 108'000 or possibly CHF 9'000 x 13 months = CHF 117'000). However, if you have taxable assets greater than CHF 100'000 or unearned income exceeding CHF 2'000, you would need to file a tax return under the EOV process. If you must file a tax return, the source tax becomes a withholding tax and you would be subject to normal rates, etc.



Also, depending on your expenses, you might wish to file a source tax correction (called Tarifkorrektur) by 31 March of the following year to include these extraordinary expenses.


It is not fully clear which source tax classification you would be subject to in Canton Zug. Under Canton Zurich's rules, you would receive a source tax tariff of either Bx or Cx depending on whether your spouse was working. See this decision grid:


https://www.steueramt.zh.ch/dam/fina...ungen_2014.pdf



Deductions from your employee salary aside in addition to source tax would include:
AHV/IV/EO 5.125% (Old age pension, invalidity insurance)
ALV 1.1% (Unemployment insurance)
Pillar II pension: this will depend on the employer's pension plan but, say, 8% (this would include long-term disability, old-age savings)

Short-term disability: this will depend on the employer's disability insurance but, say, 0.5%.



Your HR department might be able to assist you with the above.

Hi,

ty for that.

What does tarif C1 means then?
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Old 10.06.2019, 14:59
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Re: Taxation with family

C1 means married, two income family with one dependent. C1Y would mean the same with church tax and C1N without church tax. Canton Zug source tax tables are at this link:

https://www.zg.ch/behoerden/finanzdi.../quellensteuer
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Old 06.08.2019, 12:19
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Re: Taxation with family

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You will likely be coming to Switzerland on a B or L permit and should, therefore, be subject to Canton Zug Quellensteuer (source tax) living in Unterägeri (Zug).


The threshold for filing a tax return when subject to source tax is CHF 120'000, so you appear to be narrowly under the threshold (CHF 9'000 x 12 months = CHF 108'000 or possibly CHF 9'000 x 13 months = CHF 117'000). However, if you have taxable assets greater than CHF 100'000 or unearned income exceeding CHF 2'000, you would need to file a tax return under the EOV process. If you must file a tax return, the source tax becomes a withholding tax and you would be subject to normal rates, etc.



Also, depending on your expenses, you might wish to file a source tax correction (called Tarifkorrektur) by 31 March of the following year to include these extraordinary expenses.


It is not fully clear which source tax classification you would be subject to in Canton Zug. Under Canton Zurich's rules, you would receive a source tax tariff of either Bx or Cx depending on whether your spouse was working. See this decision grid:


https://www.steueramt.zh.ch/dam/fina...ungen_2014.pdf



Deductions from your employee salary aside in addition to source tax would include:
AHV/IV/EO 5.125% (Old age pension, invalidity insurance)
ALV 1.1% (Unemployment insurance)
Pillar II pension: this will depend on the employer's pension plan but, say, 8% (this would include long-term disability, old-age savings)

Short-term disability: this will depend on the employer's disability insurance but, say, 0.5%.



Your HR department might be able to assist you with the above.
Hi,

thanks again. So I would be looking at a total of about 15% in total taxation, right?
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Old 06.08.2019, 13:25
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Re: Taxation with family

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Hi,

thanks again. So I would be looking at a total of about 15% in total taxation, right?
Plus 1000+/month in deductions, plus health insurance.

Tom
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Old 06.08.2019, 13:29
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Re: Taxation with family

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health insurance
Though generally this is not deducted from one's salary.
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Old 06.08.2019, 15:54
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Re: Taxation with family

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Though generally this is not deducted from one's salary.
Still something to be considered when calculating net pay.

Tom
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Old 06.08.2019, 20:58
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Re: Taxation with family

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Still something to be considered when calculating net pay.
True, but the amount can vary wildly.
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