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Old 28.11.2019, 15:27
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tax refund for foreigners for working only few months in one year

As a foreigner on a L permit, one has to pay withholding tax every month. However the tax is calculated on the yearly income basis. For example if some earns CHF 10,000 per month, the percentage of withholding tax would be on the basis of yearly income of CHF 120,000. However, ff a foreigner only works 3 months a year, he/she still pays tax on the basis of annual income of CHF 120,000 but the actual income for 3 months is only CHF 30,000. So the tax should be significantly lower if recalculated end of the year on the basis of yearly income. This is a standard practice to calculate tax on yearly income in most countries. Now I am wondering if it is possible to get refund of the extra tax paid?
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Old 28.11.2019, 16:43
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Re: tax refund for foreigners for working only few months in one year

If the foreigner is a Swiss resident for only those three months the tax is correct.

If the foreigner is a Swiss resident also for the rest of the year they can request to be subject to normal taxation by submitting the applicable form before the deadline. In canton ZH the form is known as "Antrag für Quellensteuerpflichtige Arbeitnehmende auf Neuveranlagung der Quellensteuer 20XY" and the deadline is March 31st 20XY+1.
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Old 29.11.2019, 06:33
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Re: tax refund for foreigners for working only few months in one year

You may need to proof you have not worked the rest of the year. If you have worked the rest of the year, but income was lower than estimate, you can go and discuss.

Tax office can be challenged to review some of their basic principles - in this case they wish to avoid that you pay a lower overall tax rate by, for example, working only 6 months in CH and 6 months elsewhere and overall paying less than if worked for 12 months.

K
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Old 29.11.2019, 11:51
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Re: tax refund for foreigners for working only few months in one year

Just to add: Your worldwide income is taxable while you are a Swiss resident. In case you have foreign income while you are a Swiss resident you must also use the above form to declare the foreign income.
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