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Old 13.01.2020, 22:17
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A question about tax in Zurich

Hi everyone, I am a foreigner here, holding a B working permit.
If I donot have any income from January to November and then have a very high income (for example, 60k) in December, then how much tax I need to pay?
If it is based on that fact that my annual income is only 60k, then the tax rate is below 10%, however, if considering my monthly income in December is 60K, then the tax can be 50%.

Which way is the right way to calculate?
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Old 13.01.2020, 22:29
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Re: A question about tax in Zurich

It depends.
If you are not a Swiss tax resident in January to November, then the higher tax rate is correct. But you would also be subject to normal taxation as the pro rated yearly income would be CHF 720k.

If you are a tax resident for the full year it should be the lower tax rate. I would say an appeal and request that tax should be reassessed has good chances to be successful. If not initially at least at the court.
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Old 13.01.2020, 22:39
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Re: A question about tax in Zurich

When did you move here?

Tom
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Old 14.01.2020, 10:02
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Re: A question about tax in Zurich

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It depends.
If you are not a Swiss tax resident in January to November, then the higher tax rate is correct. But you would also be subject to normal taxation as the pro rated yearly income would be CHF 720k.

If you are a tax resident for the full year it should be the lower tax rate. I would say an appeal and request that tax should be reassessed has good chances to be successful. If not initially at least at the court.
I agree that a reassessment has quite a high chance of being approved in court, as they did that for us as well (we could prove that the paid quellensteuer was about 50% more than the standard taxation would be).
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Old 15.01.2020, 23:08
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Re: A question about tax in Zurich

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It depends.
If you are not a Swiss tax resident in January to November, then the higher tax rate is correct. But you would also be subject to normal taxation as the pro rated yearly income would be CHF 720k.

If you are a tax resident for the full year it should be the lower tax rate. I would say an appeal and request that tax should be reassessed has good chances to be successful. If not initially at least at the court.
Thanks for the information. I am a Swiss tax resident for the whole year. Do you know which organization I need to reach for tax appeal, is the court the first choice?
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Old 15.01.2020, 23:09
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Re: A question about tax in Zurich

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I agree that a reassessment has quite a high chance of being approved in court, as they did that for us as well (we could prove that the paid quellensteuer was about 50% more than the standard taxation would be).
Thanks. Could you briefly share with us how you do the tax appeal, for example, did you directly go to court, or contact the tax office first? many thanks
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Old 15.01.2020, 23:26
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Re: A question about tax in Zurich

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Thanks. Could you briefly share with us how you do the tax appeal, for example, did you directly go to court, or contact the tax office first? many thanks
Personally I would take the papers that proof the residence period and the income papers and whatever might be of interest and make a visit to the taxation office and ask for a correction.

https://www.stadt-zuerich.ch/fd/de/index/steuern.html

If that leads to nothing than the town has a specialised court for tax issues:

https://www.strgzh.ch

(I have no experience with any of them, but this seems to me the most logical order to resolve this)
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Old 16.01.2020, 10:12
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Re: A question about tax in Zurich

First, find out if the correct Tarif (tax scale) was used. If not you must request change of Tarif from the tax office of your commune where you live. You will get a decision which has also an explanation how, where, and by when you can object. Do not miss the deadline, send the objection to the correct mentioned place.

If the tarif itself is correct, but tax paid it hugely disproportional to normal taxation request a recalculation of the tax at source paid. This must be done before March 31, 20XY+1. Where 20XY is the tax year you request a recalculation.

See form "Antrag Neuveranlagung der Quellensteuer" available at
https://www.steueramt.zh.ch/internet...kblaetter.html

Fill it in and sent it to the correct place before the deadline.

Wait. Wait Wait.

Sometime you will get a decision which has also an explanation how, where, and by when you can object. Do not miss the deadline, send the objection to the correct mentioned place.

Rinse. Repeat. Until you end up at the Federal Court.
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Last edited by aSwissInTheUS; 16.01.2020 at 10:38.
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Old 16.01.2020, 10:17
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Re: A question about tax in Zurich

It is a good question how to proceed with this, or how to get the ball rolling.

This is the form one needs for asking a reassessment of their tax at source
https://www.steueramt.zh.ch/dam/fina...agung_2019.pdf

Take care, application to end of March 2020.

But a very high income at once is not one of the options to request a return. They indeed made it quite clear to me that the taxes are due in the month that you earn the money, and an averaging over the year is not possible (even if you lived in CH the whole year).

I think a first bet is indeed to call the Dienstabteilung Quellensteuer from the Kantonal office (the municipality does not have an influence on Quellensteuer). I can say that they are somewhat stubborn, so insist. The reason we eventually won our case was based on the "freizugigkeitsabkommen - FZA" with the EU countries. It basically says that EU people can not be discriminated, so if you can prove that in the "tax at source" you pay way more taxes than in the standard tax system, they should do something (in our case they applied the standard tax system).

Specific reference to the applicable law is "Qrt. 2 FZA und Art. 9 Abs. 2 des Anhangs I zum FZA".

Tell us how it turned out!
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