Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #21  
Old 13.04.2021, 12:49
Forum Veteran
 
Join Date: Mar 2014
Location: Neuchatel
Posts: 801
Groaned at 3 Times in 3 Posts
Thanked 375 Times in 225 Posts
Enohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputation
Re: Federal income tax - for previous year?

So, if I understood right, and the federal tax (and only the federal tax) is paid a year later, the (provisional) taxation is something like this:


1. Annual tax is calculated (based on prior year, or person manually giving income and wealth estimations for the year)

2. Estimated annual CANTONAL tax for CURRENT YEAR is split into 10 tranches (sent out during the year)

3. Estimated annual FEDERAL tax for PRIOR YEAR is billed in 1 tranche

4. Following year (or later), with tax return, real tax calculated and bill / refund is sent depending on what was paid in the tranches.


Do I understand right?
Reply With Quote
  #22  
Old 13.04.2021, 12:59
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Federal income tax - for previous year?

Quote:
View Post
So, if I understood right, and the federal tax (and only the federal tax) is paid a year later, the (provisional) taxation is something like this:


1. Annual tax is calculated (based on prior year, or person manually giving income and wealth estimations for the year)

2. Estimated annual CANTONAL tax for CURRENT YEAR is split into 10 tranches (sent out during the year)

3. Estimated annual FEDERAL tax for PRIOR YEAR is billed in 1 tranche

4. Following year (or later), with tax return, real tax calculated and bill / refund is sent depending on what was paid in the tranches.


Do I understand right?
Thats about right, if you pay what you think is correct, that works perfectly well too.
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #23  
Old 13.04.2021, 13:05
Member
 
Join Date: Apr 2018
Location: Zentralschweiz
Posts: 129
Groaned at 46 Times in 19 Posts
Thanked 246 Times in 79 Posts
wachtwoord has a reputation beyond reputewachtwoord has a reputation beyond reputewachtwoord has a reputation beyond reputewachtwoord has a reputation beyond repute
Re: Federal income tax - for previous year?

Nope, it's canton specific

In my canton you don't have to pay the provisional tax bill (cantonal and municipal) at all. You'll only pay a very low interest starting from the end of the year the tax bill is for (Ausgleichszins, different per canton, close to zero percent)

Only from a month after the final bill will late interest be charged (verzugszins, canton specific, a few percent).

The amount of trenches they propose is also canton specific.

Federal tax bill is due March 31 after the tax year it is for. After that verzugszinsen (3%) will be charged. That bill is provisional (as you won't have your final tax bill by then).
Reply With Quote
This user would like to thank wachtwoord for this useful post:
  #24  
Old 13.04.2021, 17:30
NotAllThere's Avatar
Modulo 2
 
Join Date: Oct 2008
Location: Baselland
Posts: 15,034
Groaned at 308 Times in 263 Posts
Thanked 23,191 Times in 9,417 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Federal income tax - for previous year?

Quote:
View Post
Nope, it's canton specific

In my canton you don't have to pay the provisional tax bill
Yes, but you're in canton x where they don't even know how to sign their own names.
Reply With Quote
  #25  
Old 13.04.2021, 17:42
curley's Avatar
Forum Legend
 
Join Date: Oct 2006
Location: canton ZH
Posts: 13,131
Groaned at 218 Times in 182 Posts
Thanked 15,264 Times in 7,847 Posts
curley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond repute
Re: Federal income tax - for previous year?

Quote:
View Post
No, they are not legally binding, however interest is charged / credited on a daily basis depending on when payments made, when the actual liability is calculated. There was a time they paid 2% tax free so I always overpaid, the money can be withdrawn at any time so it was in effect a high interest bank account.
I used to overpay too. For the same reasons.
Reply With Quote
This user would like to thank curley for this useful post:
  #26  
Old 13.04.2021, 18:29
Forum Veteran
 
Join Date: Mar 2014
Location: Neuchatel
Posts: 801
Groaned at 3 Times in 3 Posts
Thanked 375 Times in 225 Posts
Enohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputation
Re: Federal income tax - for previous year?

Quote:
View Post
Thats about right, if you pay what you think is correct, that works perfectly well too.
Thanks!

Usually, then, if for example I receive tranches of 2000CHF, but believe that I owe more, I can pay 2500CHF for a particular tranche(s).

And vice versa, I can pay 1500CHF for example if I believe I owe less.

And then: could a payment be made in a single tranche of let's say 20k CHF, and you ignore the others?
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
can I and shall I cancel 3rd pillar payment for a year during a low income year? neutralname Finance/banking/taxation 10 11.09.2019 17:44
Moved to CH mid-year: what about previous foreign income? venetian Finance/banking/taxation 3 12.03.2017 09:14
The ritual of new year's Federal Council photo MrVertigo Swiss politics/news 20 01.01.2016 20:41
B permit, income < 120k/year, but with income abroad onemorehere Finance/banking/taxation 9 13.06.2013 16:11
Bonus from previous year [how is it taxed?, tax at source] wildboar Finance/banking/taxation 1 08.12.2009 21:09


All times are GMT +2. The time now is 09:15.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0