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Old 23.08.2019, 09:57
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Taxation when wife is on unpaid leave

Hello,

I plan to be moving to Zürich to work at a local company with my wife and kids later this year. I am aware that my taxes would differ significantly when my wife is not "gainfully employed" and is taking care of the kids. However, in the country where we currently live she is still on unpaid leave from her local company. What I am wondering about is whether in this situation she would be considered gainfully employed or not (she receives no income from her company).

I couldn't find specific info on the website covering taxation issues in Zürich. Also, if you know what's the best place to ask this question (phone numbers, web form) I would also be grateful for such info.

Thanks!
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Old 23.08.2019, 10:05
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Re: Taxation when wife is on unpaid leave

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Hello,

I plan to be moving to Zürich to work at a local company with my wife and kids later this year. I am aware that my taxes would differ significantly when my wife is not "gainfully employed" and is taking care of the kids. However, in the country where we currently live she is still on unpaid leave from her local company. What I am wondering about is whether in this situation she would be considered gainfully employed or not (she receives no income from her company).

I couldn't find specific info on the website covering taxation issues in Zürich. Also, if you know what's the best place to ask this question (phone numbers, web form) I would also be grateful for such info.

Thanks!
Taxes are based on money earned. The only question is where is your wife living.
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Old 23.08.2019, 11:54
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Re: Taxation when wife is on unpaid leave

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Taxes are based on money earned. The only question is where is your wife living.
Hello, the plan was for her to remain on unpaid leave in her current company that is based outside of Switzerland (in our current country) but would live with me in Zürich.
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Old 23.08.2019, 12:31
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Re: Taxation when wife is on unpaid leave

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Hello, the plan was for her to remain on unpaid leave in her current company that is based outside of Switzerland (in our current country) but would live with me in Zürich.
Then you will be treated as married.
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Old 23.08.2019, 12:35
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Re: Taxation when wife is on unpaid leave

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Then you will be treated as married.
Hey, thanks for the reply. In this situation I was rather not sure if the tax on my income would be lower like for a married couple in which one of the spouses is not working and not receiving income. Or the unpaid leave in another country could still count as a source of income and hence I would be taxed more heavily. Maybe I'm not understanding the whole idea correctly: my understanding is that if a married couple is in Zürich and one of them is not working and they have kids the taxes on the working spouse will be lower as a result.
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Old 23.08.2019, 13:03
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Re: Taxation when wife is on unpaid leave

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Hey, thanks for the reply. In this situation I was rather not sure if the tax on my income would be lower like for a married couple in which one of the spouses is not working and not receiving income. Or the unpaid leave in another country could still count as a source of income and hence I would be taxed more heavily. Maybe I'm not understanding the whole idea correctly: my understanding is that if a married couple is in Zürich and one of them is not working and they have kids the taxes on the working spouse will be lower as a result.
Let me repeat, taxation is based on EARNINGS of RESIDENTS, so if your wife is not BEING PAID, then as far at Switzerland is concerned you would be a married couple with 1 person working & taxed accordingly. Unless your wife starts to work she has no income tone taxed at a higher rate.
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Old 23.08.2019, 13:30
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Re: Taxation when wife is on unpaid leave

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Hey, thanks for the reply. In this situation I was rather not sure if the tax on my income would be lower like for a married couple in which one of the spouses is not working and not receiving income. Or the unpaid leave in another country could still count as a source of income and hence I would be taxed more heavily.
How should an unpaid leave be a source of income if there is no payment, revenue, cash, bling-bling, Benjamins, and thus no, zero, nada income?
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Old 23.08.2019, 13:32
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Re: Taxation when wife is on unpaid leave

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In this situation I was rather not sure if the tax on my income would be lower like for a married couple in which one of the spouses is not working and not receiving income.
Unpaid leave = not working and not receiving income.

Tom
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Old 23.08.2019, 16:30
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Re: Taxation when wife is on unpaid leave

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Hey, thanks for the reply. In this situation I was rather not sure if the tax on my income would be lower like for a married couple in which one of the spouses is not working and not receiving income. Or the unpaid leave in another country could still count as a source of income and hence I would be taxed more heavily. Maybe I'm not understanding the whole idea correctly: my understanding is that if a married couple is in Zürich and one of them is not working and they have kids the taxes on the working spouse will be lower as a result.
Husband and wife are taxed as an economic unit. There is no his tax, her tax, there is only your tax as a couple.
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