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Old 27.04.2009, 21:26
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Taxation for Foreigners... a curiosity

It might seem like a stupid question but....taxation (over the net salary) is different for foreigners with respect to the locals no? Not only becuase it is deduced every month (instead of being paid at the end of the year) but also in that it is a larger percentage...is this correct?

Is this valid for as long as we foreigners work in Switzerland or for a certain amount of years?
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Old 27.04.2009, 21:29
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Re: Taxation for Foreigners... a curiosity

All I remember, is paying the Quellensteuer for the first five years. If it was
more or less, I do not remember.
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Old 27.04.2009, 23:03
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Re: Taxation for Foreigners... a curiosity

You might find that deduction from source (employer) is not unusual... when I worked overseas it was the same for me (handy, as I am sh*t with paying all in one go at the end of the year).

Never compared the tax rate for nationals and residents...
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Old 28.04.2009, 08:35
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Re: Taxation for Foreigners... a curiosity

The taxation rates for Swiss citizens and foreign residents subject to tax are identical. Many residents do not have tax deducted from their salary even before they have a "C" permit. For instance, if they earn more than CHF 120,000 per year (I think that is the limit).

The HR department where you work should be able to calculate fairly accurately what tax you will owe and deduct close to the right amount. Then when you fill in the tax form, you can make any adjustments up or down. If your status changes during the year for exampl by moving from one commune to another one with a different rate of tax, you can request an adjustment to the deduction.

In your first year of arrival the tax is calculated at the rate as if you had lived here an entire year. For example, if you earn CHF 120,000 per year and arrive in December, yout annual tax statement will show that year you only earned CHF 10,000 (i.e. for the month of December). But you will be taxed at the rate of someone who earns CHF 120K annually. Only seems fair.
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Old 28.04.2009, 12:34
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Re: Taxation for Foreigners... a curiosity

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Many residents do not have tax deducted from their salary even before they have a "C" permit. For instance, if they earn more than CHF 120,000 per year (I think that is the limit).
I thought everyone on a B (or other non-C) permit was taxed at source, regardless of salary, and then if they earn more than 120k they have to still complete a tax return.

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If your status changes during the year for example by moving from one commune to another one with a different rate of tax, you can request an adjustment to the deduction.
I may have misunderstood - I haven't done a tax return yet - but I thought that tax at source was done by averaging the commune rates across the canton. We, for example, live in one of Vaud's lowest tax rate communes, so I'm hoping for a small rebate!

kodokan
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Old 28.04.2009, 12:58
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Re: Taxation for Foreigners... a curiosity

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I thought everyone on a B (or other non-C) permit was taxed at source, regardless of salary, and then if they earn more than 120k they have to still complete a tax return.
there is an option (not very often) when an employee can be exempted from the tax at source. this is very much on a personal basis with you, your commune and employer. your employer may need to 'guarantee' that you won't abscond before paying taxes. this is why it is not used very often! (c;


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I may have misunderstood - I haven't done a tax return yet - but I thought that tax at source was done by averaging the commune rates across the canton. We, for example, live in one of Vaud's lowest tax rate communes, so I'm hoping for a small rebate!
this is correct.
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