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Old 12.04.2021, 17:45
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Federal income tax - for previous year?

Hi all,

I have a question regarding federal income tax, I didn't find the answer on Google or on the forum.

For Swiss citizens / C-permit holders, obviously we pay income tax in tranches (here in NE, in 10 tranches for canton plus 1 tranche for federal).

I noticed when going through my "dossier" on my account on the canton's page, that the federal tax paid in 2021 actually appears under the 2020 dossier. Then I checked the tax bill itself, and the reference has "2020".

I always thought that the federal tax bill was for the current year, as with the cantonal tranches, but is this not the case?

Thanks for any help
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Old 12.04.2021, 18:07
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Re: Federal income tax - for previous year?

It's always for the past year.

Tom
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Old 12.04.2021, 18:08
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Re: Federal income tax - for previous year?

You pay the federal tax always a year later.
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Old 12.04.2021, 18:28
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Re: Federal income tax - for previous year?

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You pay the federal tax always a year later.
ALL taxes, not just Federal!

Tom
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Old 12.04.2021, 18:47
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Re: Federal income tax - for previous year?

You usually get instalments for taxes every year. Right now you should have received instalments for 2021.

Then, after you have completed your tax return the Canton sends you the final assessment and you pay the difference (Federal, Cantonal and Communal). This usually happens starting in April the following year (depending on when the tax return cut off date and depending also on how quick your Canton is in assessing your tax return).
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Old 12.04.2021, 19:22
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Re: Federal income tax - for previous year?

Thanks for your comments.

I understand for the final tax calculation - this is always paid or refunded later (the next year, or even later).

I didn't know about the tranches though.

So if I understood correctly, I received tranches for cantonal tax (X 10) for 2021, and in March a tranche for federal tax (X 1) for 2020.

Confusing!! But thanks a lot for your help everybody
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Old 12.04.2021, 19:32
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Re: Federal income tax - for previous year?

I think it's because it's not an instalment per se but more of a provisional calculation.

Also, amount is pretty small compared to other taxes.
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Old 12.04.2021, 21:32
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Re: Federal income tax - for previous year?

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You usually get instalments for taxes every year. Right now you should have received instalments for 2021.

Then, after you have completed your tax return the Canton sends you the final assessment and you pay the difference (Federal, Cantonal and Communal). This usually happens starting in April the following year (depending on when the tax return cut off date and depending also on how quick your Canton is in assessing your tax return).
Stupid question from a lowly B permit holder:

Do you have to pay the instalments or can you just pay when you file early the following year?
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Old 12.04.2021, 21:45
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Re: Federal income tax - for previous year?

OK, let's do taxes for idiots.

2020 taxes are calculated in 2021, as otherwise they can't calculate them.

Got it, morons?

God, the stupidity of idiots never ceases to amaze me.

Tom
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Old 12.04.2021, 22:05
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Re: Federal income tax - for previous year?

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OK, let's do taxes for idiots.

2020 taxes are calculated in 2021, as otherwise they can't calculate them.

Got it, morons?

God, the stupidity of idiots never ceases to amaze me.

Tom
Actually it isn't that straightforward when you look at the bills sent.

At least in SG, I also get a provisional federal tax bill for last year (2020) and local provisional bills for this year (2021).

Yes taxes are calculated for the previous year, and the final bill is all for the one year, but the provisional bills are different and also confused me to start with.
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Old 13.04.2021, 08:41
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Re: Federal income tax - for previous year?

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OK, let's do taxes for idiots.

2020 taxes are calculated in 2021, as otherwise they can't calculate them.
But what they can do, and often do, is send requests for payments on account before the final calculation. These provisional bills are based on the previous year's calculation on the assumption that not much will change year on year.

I seem to recall that you don't have to pay them, but if you do, you'll get interest paid at a not unreasonable rate. And if you don't in some circumstances you can get charged interest.

Maybe Ticino is different from other Cantons. I've heard rumours they take years to do the calculation, so it might be hard for them to figure out provisional bills.
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Old 13.04.2021, 09:17
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Re: Federal income tax - for previous year?

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OK, let's do taxes for idiots.

2020 taxes are calculated in 2021, as otherwise they can't calculate them.

Got it, morons?

God, the stupidity of idiots never ceases to amaze me.

Tom
This.
It is called "Gegenwarsbesteuerung" current taxation - yet the most current they can get is the previous year as this year nobody knows yet what needs to be taxed.
We used to have Vergangenheitsbesteuerung past taxation. In those days tax-forms had to be filed every two years only. Lovely days.
Depending on the canton that ended 2001, latest 2003.
The disadvantage of the past taxation was that if the income dropped dramatically, it was kind of tough to pay taxes on the income of the golden years for big spenders who don't think/plan ahead (what's that, 80% of the population? )

Sorry you're in a rotten mood, Tom. I'm surprised you're still amazed.

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But what they can do, and often do, is send requests for payments on account before the final calculation. These provisional bills are based on the previous year's calculation on the assumption that not much will change year on year.

I seem to recall that you don't have to pay them, but if you do, you'll get interest paid at a not unreasonable rate. And if you don't in some circumstances you can get charged interest.

Maybe Ticino is different from other Cantons. I've heard rumours they take years to do the calculation, so it might be hard for them to figure out provisional bills.
I've yet to see a canton which does not send a provisional bill. They want to see money, no matter how slowly they work (and some cantons are very sleepy). It can take years until you receive the definitive tax bill. Until then you never know .....
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Old 13.04.2021, 09:31
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Re: Federal income tax - for previous year?

The stupidity of idiots should never amaze. After all the clue is in the fact that they're idiots.
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Old 13.04.2021, 10:06
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Re: Federal income tax - for previous year?

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Stupid question from a lowly B permit holder:

Do you have to pay the instalments or can you just pay when you file early the following year?
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.
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Old 13.04.2021, 10:09
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Re: Federal income tax - for previous year?

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But what they can do, and often do, is send requests for payments on account before the final calculation. These provisional bills are based on the previous year's calculation on the assumption that not much will change year on year.
I never pay the provisional bills.

Tom
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Old 13.04.2021, 10:53
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Re: Federal income tax - for previous year?

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I never pay the provisional bills.

Tom
Then you always pay the interest on overdue tax.
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Old 13.04.2021, 10:56
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Re: Federal income tax - for previous year?

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Then you always pay the interest on overdue tax.
That would be stupid though.
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Old 13.04.2021, 10:59
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Re: Federal income tax - for previous year?

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Then you always pay the interest on overdue tax.
Normally interest can be avoided by paying the provisional bill as due even if the definite amount is finally higher. As usual, YMMV applies as per canton Ė if I recall correctly, Tomís civilising influence in our southern reaches helps avoid interest claims on unpaid provisional tax bills in Ticino.
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Old 13.04.2021, 11:06
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Re: Federal income tax - for previous year?

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The stupidity of idiots should never amaze. After all the clue is in the fact that they're idiots.
True, but not all idiots reach perfection either
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Old 13.04.2021, 11:46
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Re: Federal income tax - for previous year?

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Stupid question from a lowly B permit holder:


Do you have to pay the instalments or can you just pay when you file early the following year?
This depends on the canton.

In ZH you can defer payment of local/state taxes until the final tax bill and only have to pay an interest of 0.25% from October 1 of the tax year (Ausgleichszins). For federal taxes you have to pay 3% (Verzugszins), though. I don't know whether they'll send you a Mahnung for unpaid provisional federal tax bills.

In AG you have to pay the provisional local/state tax bill, otherwise you'll get a Mahnung, as far as I know.

Presumably in all cantons you can have the provisional tax bill adjusted if you think it's too high (or too low). And you can ask them for a payment plan.

You should also keep in mind that it can take many months until you get the final tax bill after filing your taxes. I typically file early but my final tax bill always arrives in January or February of the following year, i.e., more than a year after the end of the tax year.
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