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Old 23.01.2021, 23:45
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Question about the withholding tax ( Quellensteuer eidg )

Dear EFers, I hope you are all doing fantastic there.

I wanted to pick your brains about the withholding tax / Quellensteuer eidg. from my income.

I live and work in CH since 2014 on a B permit.

Unfortunately, I've lost my job early last summer and I am covered by unemployment insurance since October'20 while looking for a new one.

The last quarter of 2020 was okay with stable income.

But on my payslip of Jan'21, I've seen that the withholding tax / Quellensteuer eidg deduction has tripled ( from 7% to 21% based on gross income ), and this hurt the family income.

I know Swiss authorities do not make mistakes very often, but I could not figure out the reason for the tax jump, so I thought some of you masterminds can share your experience here, please.

Could it be an honest mistake, or can it be a one time shot in the first month of the year? Do you suggest that I go to the tax office and ask for a clarification/correction?

Thanks in advance for your comments and wish you all a great weekend.,

Stay safe. B.
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Old 23.01.2021, 23:52
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Re: Question about the withholding tax ( Quellensteuer eidg )

Sounds very wrong. Call the tax office and/or RAV for explanation.
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Old 23.01.2021, 23:56
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Sounds very wrong. Call the tax office and/or RAV for explanation.
Thanks a lot, I appreciate your reply. Do you think RAV would have a say in the tax? Or maybe I go to the tax office on Monday personally?
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Old 24.01.2021, 00:04
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Thanks a lot, I appreciate your reply. Do you think RAV would have a say in the tax? Or maybe I go to the tax office on Monday personally?
No idea how RAV payments are administered, that is why I wrote both RAV and tax office. Suggest you call first, not sure these guys work from the office now.
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Old 24.01.2021, 00:13
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Re: Question about the withholding tax ( Quellensteuer eidg )

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No idea how RAV payments are administered, that is why I wrote both RAV and tax office. Suggest you call first, not sure these guys work from the office now.
Thanks again, I will do that!
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Old 24.01.2021, 00:20
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Re: Question about the withholding tax ( Quellensteuer eidg )

Once or twice, when I had queries about my RAV payment I simply asked my RAV advisor and she was able to explain. If it's a particular issue that's unique to your situation, your advisor might not have an immediate answer, or may refer you to the right contact for help. But either way, your advisor is there to assist you -- and should do so.
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Old 24.01.2021, 07:11
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Re: Question about the withholding tax ( Quellensteuer eidg )

RAV unemployment insurance payments are subject to source-tax (Quellensteuer) under tariff G in 2021. To determine whether the correct rate was applied under tariff G, please see the section "Ersatzeinkünfte, die von Versicherern ausbezahlt werden" at this link:

https://www.zh.ch/de/steuern-finanze...---tarife.html


For 2020 you were likely subject to tariff BxN, which is single-earner married and where x is the number of children and N is confessionless. The rates for tariff B can be found at this link (Tariff C could also have been used for a dual-earner married):


https://www.zh.ch/de/steuern-finanze...ml#-2056028775
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Old 24.01.2021, 17:01
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Re: Question about the withholding tax ( Quellensteuer eidg )

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RAV unemployment insurance payments are subject to source-tax (Quellensteuer) under tariff G in 2021. To determine whether the correct rate was applied under tariff G, please see the section "Ersatzeinkünfte, die von Versicherern ausbezahlt werden" at this link:

https://www.zh.ch/de/steuern-finanze...---tarife.html


For 2020 you were likely subject to tariff BxN, which is single-earner married and where x is the number of children and N is confessionless. The rates for tariff B can be found at this link (Tariff C could also have been used for a dual-earner married):


https://www.zh.ch/de/steuern-finanze...ml#-2056028775
Thanks a lot, I see that they have removed the confessionless option, so you pay regardless. Plus, it does not matter if you are a single earner or not, anyway.
As far as I have seen, the tax rate has increased from 7% to 16%, so more than double. Can it be this way? Thanks again, Baris
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Old 24.01.2021, 17:41
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Thanks a lot, I see that they have removed the confessionless option, so you pay regardless. Plus, it does not matter if you are a single earner or not, anyway.
As far as I have seen, the tax rate has increased from 7% to 16%, so more than double. Can it be this way? Thanks again, Baris
Holy crap, this is indeed a problem and something I was not aware of. Checked for my canton and same thing, tax rate of 11% under G for what I would be getting from RAV, and 6.9% for the same amount under C2N. With current salary and assumed RAV, tax rate would be almost identical but base amounts of course significantly different.

Your 21% still seems way off. I would call them and politely ask for an explanation.

Last edited by komsomolez; 24.01.2021 at 17:59.
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Old 26.01.2021, 18:46
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Re: Question about the withholding tax ( Quellensteuer eidg )

Just ran into the same problem and posted about it in the other thread:
https://www.englishforum.ch/3268107-post8.html

Taxing extra the one drawing unemployment benefit is a thing (already strange enough) but counting that for the spouse's tariff determination at the same time is outrageous.
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Old 28.01.2021, 12:45
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Just ran into the same problem and posted about it in the other thread:
https://www.englishforum.ch/3268107-post8.html

Taxing extra the one drawing unemployment benefit is a thing (already strange enough) but counting that for the spouse's tariff determination at the same time is outrageous.
I have heard this from a bunch of friends this week as well. I wish there is something we can do!
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Old 28.01.2021, 13:40
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Holy crap, this is indeed a problem and something I was not aware of. Checked for my canton and same thing, tax rate of 11% under G for what I would be getting from RAV, and 6.9% for the same amount under C2N. With current salary and assumed RAV, tax rate would be almost identical but base amounts of course significantly different.
I have one explanation why tariff G is used:

Tax at source is based on the gross amount and assumes some standard deductions. Regular tax is on the net amount.

First, there is no pillar 2, if you are on RAV
Second, there are no deductions for travel to work and eating out.

If you are unhappy you can request to be subject to normal taxation (has to be done before March 31st after the end of the tax year).
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Old 01.02.2021, 11:56
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Re: Question about the withholding tax ( Quellensteuer eidg )

Thanks, but this application would be checked with the tax papers by the end of the year, theoretically, and one would get paid back in 3 years :-), right?
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Old 01.02.2021, 14:22
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Dear EFers, I hope you are all doing fantastic there.

I wanted to pick your brains about the withholding tax / Quellensteuer eidg. from my income.

I live and work in CH since 2014 on a B permit.

Unfortunately, I've lost my job early last summer and I am covered by unemployment insurance since October'20 while looking for a new one.

The last quarter of 2020 was okay with stable income.

But on my payslip of Jan'21, I've seen that the withholding tax / Quellensteuer eidg deduction has tripled ( from 7% to 21% based on gross income ), and this hurt the family income.

I know Swiss authorities do not make mistakes very often, but I could not figure out the reason for the tax jump, so I thought some of you masterminds can share your experience here, please.

Could it be an honest mistake, or can it be a one time shot in the first month of the year? Do you suggest that I go to the tax office and ask for a clarification/correction?

Thanks in advance for your comments and wish you all a great weekend.,

Stay safe. B.
This is correct. They have a new tariff category called category G with very high tax rates. I am not sure whether this is a Kanton Zurich issue only and whether to move to a different canton to live.
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Old 01.02.2021, 14:42
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Re: Question about the withholding tax ( Quellensteuer eidg )

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This is correct. They have a new tariff category called category G with very high tax rates. I am not sure whether this is a Kanton Zurich issue only and whether to move to a different canton to live.
The Federal tax offices Kreisschreiben 45 is a federal thing. Everyone is in the same boat.
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Old 01.02.2021, 14:58
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Re: Question about the withholding tax ( Quellensteuer eidg )

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First, there is no pillar 2, if you are on RAV
Isn't there? I was under the impression there is a legal minimum to be paid in.
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Old 01.02.2021, 15:06
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Isn't there? I was under the impression there is a legal minimum to be paid in.
There is a legal minimum pillar 2 saving contributions if you are employed. But on RAV you are unemployed. However, while on RAV you have pillar 2 insurance in case of death and disability.

If you want to save more money tax preferred you have to add it into your pillar 3a, where you can add 20% of the income up to CHF 34k (in case you did not pay any pillar 2 in this tax year).
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Old 01.02.2021, 15:09
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Re: Question about the withholding tax ( Quellensteuer eidg )

This is a federal tax. There are in discussion whether to reduce this rate so there may be a change soon. Group G tax rates are exorbitant.
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Old 03.02.2021, 18:57
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Re: Question about the withholding tax ( Quellensteuer eidg )

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This is a federal tax. There are in discussion whether to reduce this rate so there may be a change soon. Group G tax rates are exorbitant.
This is promising, I hope they do something about it soon.
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Old 03.02.2021, 19:15
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Re: Question about the withholding tax ( Quellensteuer eidg )

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Isn't there? I was under the impression there is a legal minimum to be paid in.
That's pillar 1.

Tom
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