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Old 13.07.2019, 17:30
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Moving canton, tax at source

Hi,

I have the B permit and I am planning to move canton in September, most likely to ZH.

Since I am taxed at source, will I pay pro rata in canton A and canton B - or will I have to pay taxes for the full year in for example ZH if I live there 31.12? Simply put: will i pay tax in the canton i live in at the time of payout?

Have seen some other threads, but a lot of confusing information. I am earning less than required for filing the tax returns.
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Old 13.07.2019, 17:56
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Re: Moving canton, tax at source

do you or do you expect to make a tax return?

If yes: you pay an annual tax on where you are resident on 12.31 The tax at source withheld in ZG will contribute to the total amount you need to pay in ZH for the full year. You may have some small additional emails / phone calls to confirm to the ZH tax office that ZG has already some of your tax at source but usually they are pretty clued in and you have nothing to do. (but it could be 18+ months before conclusion! that's just ZH normal processing times)

If no: tax at source is on a month-by-month (payslip-by-payslip) basis. When you tell your HR department of your official address change they should update their payroll and you are on ZH rates from then.

In any case whether you make a tax return or not, you are on ZH rates from when you tell HR that you have moved and your permit is updated.
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Old 26.07.2019, 12:53
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Re: Moving canton, tax at source

Hi thanks

I do not expect to get 120000 paid out before tax this year, so for this year, no.

Next year is a different story maybe and I need to make sure I live in canton A again before 31.12.2020, if I expect to make more than 120000 and want that tax rate?
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Old 26.07.2019, 13:36
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Re: Moving canton, tax at source

1) For people solely on tax at source

If you move within any canton nothing changes as tax at source is the same for the whole canton.

If you move to another canton tax at source has to be paid to the canton where you live when tax at source is levied. Tax at source is levied for every pay check. (Art. 107 DBG https://www.admin.ch/opc/de/classifi...ndex.html#a107 and Art. 38 Abs. 4 StHG https://www.admin.ch/opc/de/classifi...index.html#a38)

2) For people subject to a full tax declaration Swiss, married to a Swiss, have a C-permit, married to someone with a C-permit, income over 120k (except Geneva), owning real estate in resident canton, income from self employment, foreign income, or considerable other income which is not subject to tax at source.

If you move within canton Zurich the tariff where you live at the end of the tax period will be used for the whole year and the return will also be processed by this commune 35 Abs. 3 and 108 StG (Canton ZH) https://www.zh.ch/internet/de/rechtl...en&Ordnr=631.1
(Other cantons other rules, could be pro-rata or where you live at the beginning of tax period)

If you move from any canton to another one than the the tariff where you live at the end of the tax period will be used. Art. 4b StHG https://www.admin.ch/opc/de/classifi...index.html#a4b

3) For people initially on tax at source but are subject to full tax declaration after the move

Rule 2) applies. Not much of an issue if you moved within the canton. But due to rule 1) expect extra time until your tax return has been processed and the old canton has fully paid the new canton.

https://www.englishforum.ch/finance-...ng-canton.html
https://www.englishforum.ch/finance-...n-cantons.html

4) The tax period
The tax period is from January 1st to December 31st.
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Old 26.07.2019, 13:58
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Re: Moving canton, tax at source

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I do not expect to get 120000 paid out before tax this year, so for this year, no.
Umm, its 120k PRO-RATED, i.e. if you are here for 6 months, it's 60k.

Tom
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Old 28.07.2019, 11:21
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Re: Moving canton, tax at source

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Next year is a different story maybe and I need to make sure I live in canton A again before 31.12.2020, if I expect to make more than 120000 and want that tax rate?

when making a tax return it is not as simple as the "tax rate". each canton has their own rules for what can and cannot be classed as deductions (e.g. cost of travel to work: public transport of car KMs) and to varying amounts, what is income and how the whole calculation is made. I'm not even going to talk about the how "living" in a cheap tax rate could in fact be more costly because you end up losing on other areas e.g. rentals, commute to work, schools etc.


if you are simply in a tax a source situation (earn <120kCHF) then each canton applies the cantonal mean rate which is published on their web sites and this rate is applied to you each month by your employer. where you live is the rate that is applied.
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