Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 28.06.2021, 16:01
Dinivan's Avatar
Member
 
Join Date: Mar 2007
Location: Geneva
Posts: 207
Groaned at 35 Times in 24 Posts
Thanked 254 Times in 132 Posts
Dinivan is considered knowledgeableDinivan is considered knowledgeableDinivan is considered knowledgeable
2021 tax change - taxation ordinaire ultérieure

Apparently there has been a change in the tax code starting from 2021 where residents who pay ŕ la source can now choose to pay with an ordinary tax in order to implement a fairer system. In some cases this is compulsory (gross salaries above 120K).

Does anyone have an experience with this? would you recommend switching to an ordinary tax declaration? are the potential deductible expenses worth the change?
Reply With Quote
  #2  
Old 28.06.2021, 17:17
Medea Fleecestealer's Avatar
Forum Legend
 
Join Date: Jul 2011
Location: Switzerland
Posts: 22,148
Groaned at 409 Times in 317 Posts
Thanked 17,128 Times in 9,634 Posts
Medea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond reputeMedea Fleecestealer has a reputation beyond repute
Re: 2021 tax change - taxation ordinaire ultérieure

Far as I know it's always been possible for B permit holders to request to fill in a tax form; maybe it's something Geneva specific? B permit holders who earn more than 120k have always had to fill in a tax return.
Reply With Quote
  #3  
Old 28.06.2021, 17:25
John_H's Avatar
Forum Legend
 
Join Date: May 2013
Location: Up above Nyon
Posts: 4,077
Groaned at 113 Times in 69 Posts
Thanked 5,487 Times in 2,120 Posts
John_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond reputeJohn_H has a reputation beyond repute
Re: 2021 tax change - taxation ordinaire ultérieure

In Geneva the limit was / is 500k no? Or other reasons like owning property abroad..

I'm useless at tax stuff but I'm pretty sure I pay more on ordinary tax than i ever did tax at source. Plus i prefer that i don't see the money, i hate having to actually pay it, it just feels more painful to me.
Reply With Quote
The following 2 users would like to thank John_H for this useful post:
  #4  
Old 28.06.2021, 19:22
HIAO's Avatar
Forum Veteran
 
Join Date: Jun 2011
Location: Bellevue
Posts: 1,319
Groaned at 8 Times in 7 Posts
Thanked 3,401 Times in 947 Posts
HIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond repute
Re: 2021 tax change - taxation ordinaire ultérieure

Yes. There's been a tax reform to harmonise taxes in GVA, where possible with all cantons, from 1 Jan 2021.

From this point, Geneva based workers (except cross border workers), with income over CHF 120k, or who own property, have taxable wealth, or other income not taxed at source, are subject to ordinary tax rule. This also applies to workers who are taxed at source.

In most cases, this reform means that the annual cycle to demand a tax rectification in most situation (such as for 3rd pillar contributions) is no longer applicable.

Those who are not meeting these conditions can make a one time election to opt for the ordinary tax rule to be permanently applied.

Cross border workers can voluntarily file a deemed resident tax return in Switzerland if more than 90% of their and spouses combined income is taxable in Switzerland.
Reply With Quote
  #5  
Old 29.06.2021, 10:04
Member
 
Join Date: Feb 2014
Location: Zürich
Posts: 110
Groaned at 1 Time in 1 Post
Thanked 54 Times in 34 Posts
erikdebest has no particular reputation at present
Re: 2021 tax change - taxation ordinaire ultérieure

For two people, both single, living in Zurich city and both earning the same amount in 12 equal monthly payments, with no exceptional high deductions for eg work related costs, the person paying tax at source will pay less taxes than the person on ordinary taxation. Two reasons is that the lumpsum work related costs used as basis for tax at source are 10% of the gross income. You can only accomplish that in ordinary taxation if you have a GA, need a car, take a lot of courses... Other reason is that city of Zurich has 119% taxes (used for the ordinary taxation), while the tax at source is at the cantonal average of 100% (used for tax at source).

So, the person taxed at source had a special "form" to handle in extra deductions, as for example the 3a, child care (eg KITA). The amount paid throughout the year wasdivided by 12 and deducted from the monthly income.

Now, that special form does not exist anymore, everyone has the ordinary taxation. If you request that to declare the contributons to eg your 3a pillar, you will also have to declare actual work related costs. So if yout income is 100.000, the lump sum used in the tax at source was 10.000. Are your actual work related costs that high?

So indeed a very good question, you will have to compare. IN our case, when we were taxed at source we paid way more than in ordinary taxation, so our tax was reassessed in the ordinary way (but we needed a lawyer to get that).
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
3 ski destinations | 1 card | 1 price | summer 2021 & winter 2021/22 PanFastic Travel/day trips/free time 9 13.04.2021 21:54
2021 Naturalisation in Zurich(City): Change of format for the Einbürgerungsgespräch? reddog Permits/visas/government 14 09.04.2021 10:46
Clock change 2021 Island Monkey Daily life 40 21.03.2021 21:19
Taxation at source -> how to change to a normal taxation petertu Finance/banking/taxation 13 24.02.2021 19:00
Change of residence (ZH to SO) and taxation hoover Permits/visas/government 2 06.08.2007 20:07


All times are GMT +2. The time now is 14:20.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0