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Old 23.08.2021, 11:18
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External income tax

Hello everyone,

I currently work full time in Zurich. In my home country I have % from a company where I do a bit of management. Monthly I would receive up to 2000 CHF from that company using a wire transfer.

I have a "B" permit, how should I declare this income? Or is it too small for Switzerland to declare it? Or should I declare it only when I have the "C" permit?
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Old 23.08.2021, 11:25
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Re: External income tax

(nothing authoritative, just my understanding)

If you are already filing a tax return - you will just declare it there.

If you are not filing a tax return (because your annual Swiss income is <120k) then:
  • if your other income is more than X, you must actually now file a tax return, so you will include it there
  • if your other income is less than X, don't have to do anything

I think X was 2'500 chf a couple of years ago in ZH, so you probably need to check that - seems that you have a significant income (24k annually)
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Old 23.08.2021, 11:28
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Re: External income tax

Thank you for the reply. Do you know where I can find the "X" amount?

So it's totally fine to send that money to my Swiss bank without having to make some kind of declarations? It will definitely be less that 2.5k / month.
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Old 23.08.2021, 12:10
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Re: External income tax

The 2.5k I mentioned is per year, so I don't think you're fine.

You can start here

Google translate says:
Quote:
A subsequent ordinary assessment is carried out ex officio under the following conditions:

For persons subject to withholding tax and domiciled in the canton of Zurich
- if a gross annual income of at least CHF 120,000 is achieved in the calendar year from employment (employment) (in the case of persons living in an undivided marriage, the gross income of the spouses from employment is not added together to determine the threshold; Threshold value, the periodic gross income is converted to twelve months and the aperiodic gross wage components are included without conversion)
- if withholding tax credits are reclaimed
- if the income that is not subject to withholding tax (e.g. income from securities or real estate) is at least CHF 3,000
- if the taxable assets (e.g. securities, real estate) of individuals are at least CHF 80,000 or the taxable assets of joint taxpayers are at least CHF 160,000
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Old 23.08.2021, 12:29
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Re: External income tax

The threshold above which the income is taxable is 2.3k per year. See here.

You'll (probably) owe AHV/IV/EO, and will (probably) have to pay both they employee's and the employer's half, i.e. 10.6% currently.

No idea how that works if you're taxed at source. It's probably best to enquire with the tax office regardless of tax scheme you're under, you're not the first and they can probably inform you about the ins and outs with a mouseclick.
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Old 24.08.2021, 12:04
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Re: External income tax

Thank you for the reply.
So I should pay 2 income taxes, 1 in the country where I receive the money and 2 in Switzerland?

If I receive that money in another non-EU country and don't use them (as I don't quite need them at the moment) and they are in a non-EU country and bank, do I still have to declare it in Switzerland, if I don't own them here?

Sorry if it seems like a stupid question, I'm just new in all the tax related topics.
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Old 24.08.2021, 12:10
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Re: External income tax

Quote:
View Post
Thank you for the reply.
So I should pay 2 income taxes, 1 in the country where I receive the money and 2 in Switzerland?

If I receive that money in another non-EU country and don't use them (as I don't quite need them at the moment) and they are in a non-EU country and bank, do I still have to declare it in Switzerland, if I don't own them here?

Sorry if it seems like a stupid question, I'm just new in all the tax related topics.
You may or may not will need to pay 2 income taxes, it really depends on the specifics and double taxation agreements between the countries - you will need to do more homework there unfortunately (or hire a tax advisor).

Regarding the money sitting in another country: that does not really matter, it's still your money and counts the same as your swiss bank account
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Old 24.08.2021, 13:43
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Re: External income tax

Normally, you are liable for tax where the work is performed. The location of the company for whom you work is irrelevant. If you pay tax in one country, that's usually offset against any tax you pay in the other. That's what dual taxation treaties are about.

But if you're physically working here, you shouldn't be paying tax on that income in the paying country any way.

You must declare all income. So you tell the tax office you're receiving about 2000 francs a month and they'll send you a tax return yearly, if you don't already receive one.

If they payments arise from employment, then additional there's social contributions to pay. See ANOBAG (referenced here quite a lot).
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