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Old 21.05.2020, 11:31
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Re: 120k and tax at source / quellensteuer

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I was told by them that total salary matters not just the fixed one. Unfortunately I once crossed 120k due to bonus and later received forms for the tax return. Since then I am receiving forms however my fixed salary is much lower than 120k. In Zurich city actual tax rates are much higher than the tax at source.
I was in that case last year (above 120K counting the bonus) and didn't receive a return to file. Proactively contacted the ZH tax authorities who then confirmed me that this was normal as only fixed income matters (which makes perfect sense as it would be unfair otherwise). Filed the "Antrag Neuveranlagung der Quellensteuer" 2 months ago and have not heard back from them.
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Old 21.05.2020, 14:35
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Re: 120k and tax at source / quellensteuer

You will probably receive forms around June. this is the reply I received from tax department:

"The limit of CHF 120'000 applies to one person, i.e. it applies only if one of the spouse's gross income is above. If this is the case, you will receive the tax return form for 2016 form automatically around June 2017."

First time it takes some time after that you receive every year on time in Jan.

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I was in that case last year (above 120K counting the bonus) and didn't receive a return to file. Proactively contacted the ZH tax authorities who then confirmed me that this was normal as only fixed income matters (which makes perfect sense as it would be unfair otherwise). Filed the "Antrag Neuveranlagung der Quellensteuer" 2 months ago and have not heard back from them.
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Old 21.05.2020, 14:39
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Re: 120k and tax at source / quellensteuer

My experience from my Quellensteuer (PAYE) days was the amount deducted was often a little higher than what one would pay as a regular tax payer. Therefore filling in a tax return (as my earnings are more than the EF poverty threshold) would result in a rebate.

Our usual thing is to leave any rebate in the Tax office account as they often pay better interest than the banks.

The "Living And Working In Switzerland" book we used to read before EF was a thing was Quellensteuer was a little higher percentage than regular tax to guard against those on a temporary permit skipping the country at the end with tax owing.

HTH.
Nick

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How does this work if you earn exactly 120K and say, get a bonus (based on last year performance) of 3K? Same applies I assume, that you need to fill in tax declaration papers now?

If I take few weeks of unpaid leave to get the overall total back to under 120K, then all should be ok?
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Old 21.05.2020, 16:22
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Re: 120k and tax at source / quellensteuer

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You will probably receive forms around June. this is the reply I received from tax department:

"The limit of CHF 120'000 applies to one person, i.e. it applies only if one of the spouse's gross income is above. If this is the case, you will receive the tax return form for 2016 form automatically around June 2017."

First time it takes some time after that you receive every year on time in Jan.
That reply doesn't state anything about what is "gross income" so I am not sure what point you are trying to make...

On my side I asked the tax authorities specifically that question, insisting that I was largely above 120K all things considered. Before answering, they checked my personal file to confirm and we also went through each lines of my salary certificate together.

I will let you know as soon as I hear back from them. Hopefully with a fat refund
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Old 21.05.2020, 16:36
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Re: 120k and tax at source / quellensteuer

As far as I know gross income is the income before tax and deductions. This even includes income from other sources e.g. renting out property.

If they let you go without tax return, good for you 👍

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That reply doesn't state anything about what is "gross income" so I am not sure what point you are trying to make...

On my side I asked the tax authorities specifically that question, insisting that I was largely above 120K all things considered. Before answering, they checked my personal file to confirm and we also went through each lines of my salary certificate together.

I will let you know as soon as I hear back from them. Hopefully with a fat refund
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