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Old 08.03.2010, 15:17
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New Tax Year - Bonus

Hello,

I left Switzerland at the end of last year and was just paid my bonus (March). The problem is that they deducted 35% from the bonus because, as they tax me from source, they multiplied my bonus by 13 even though it is a once only payment. Is there a way I can get it back? I is there a form I can fill in?

Thanks,
Jason
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Old 08.03.2010, 15:41
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Re: New Tax Year - Bonus

When you are taxed at source the tax rate applied each month is related to the salary you get in that month.
So the month you get your bonus you are taxed by a higher percentage and there is nothing you can do.
Last year I agreed with my employer to have it paid over 2-3 months but at the end it is more or less the same (also your normal salary gets taxed more over those 2-3 months instead of only 1).
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Old 08.03.2010, 15:45
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Re: New Tax Year - Bonus

My contract finished at the end of last year, I don't have any other income. This is my only payment and they deducted 35% and not 10% as it was under 20'000Chf.
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Old 06.07.2010, 09:49
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Re: New Tax Year - Bonus

I had the same thing. That I got my bonus and my tax rate jumped form 11% to 28%. The worse thing is that my normal salary was also charged at the higher rate, so by getting the bonus you get less of you monthly salary, which doesnt seem fair.

Does anyone know if I can claim this back when I do a tax return?
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Old 06.07.2010, 10:29
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Re: New Tax Year - Bonus

If you are taxed at source, on a monthly basis they will take what you are paid - multiply by 12 - and then apply the relevent tax rate.

If you believe you have been over taxed - then you should ask to do a tax return at the end of the year. You will then fill out the paperwork - along with the Swiss and any married expats and expats on C.

You'll complete it all, perhaps having spent 500chf on a tax advisor, only to find you paid the right amount!

On the tax return you enter in the amount you earned and also the tax you paid. We have just had our bill through from 2008 when we worked in the UK and in Switzerland - we had some help for 2007 (500chf) and then used the 2007 bill as our template for filling out 2008.
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Old 06.07.2010, 11:07
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Re: New Tax Year - Bonus

It defiantly is over taxed.

Eg, if you earn 10K a month (120K a year) you pay around 10-12% and then get a one off bonus of 10K in one month, then it assumes your income is 240K a year, and you are taxed for 25%+ for that month. But in reality your early income is 130K and so the rate should not change that much.
I will do a tax return in April and see, but 500CHF for a tax advisor is way too much.
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Old 06.07.2010, 11:38
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Re: New Tax Year - Bonus

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It defiantly is over taxed.

Eg, if you earn 10K a month (120K a year) you pay around 10-12% and then get a one off bonus of 10K in one month, then it assumes your income is 240K a year, and you are taxed for 25%+ for that month. But in reality your early income is 130K and so the rate should not change that much.
I will do a tax return in April and see, but 500CHF for a tax advisor is way too much.
240k per year = 25% is about right.

The pay systems tax at source based on total income in the month - they don't distinquish between the 2 sources of income.

Fill out a tax return at the end of the year - 500chf is cheap. And if you don't know what to fill out - where and for how much - you will need help.
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Old 06.07.2010, 11:44
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Re: New Tax Year - Bonus

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Hello,

I left Switzerland at the end of last year and was just paid my bonus (March). The problem is that they deducted 35% from the bonus because, as they tax me from source, they multiplied my bonus by 13 even though it is a once only payment. Is there a way I can get it back? I is there a form I can fill in?

Thanks,
Jason
Jason, since it is paid in March 2010, you need to file a tax return in the coming year (by March 2011). I guess you will be getting a tax form (with details of how much you earned this year and how much tax paid by you), from your employer or from the agencies like ADP.

Just do the tax filing and you will automatically receive the extra amount deducted. This happens to my husband every year. They deduct a bulk amount as tax and used to pay back after we do tax return filing.
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Old 06.07.2010, 11:47
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Re: New Tax Year - Bonus

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240k per year = 25% is about right.

Fill out a tax return at the end of the year - 500chf is cheap. And if you don't know what to fill out - where and for how much - you will need help.
You can get an accountant to fill in a Tax return and give you general advice for way less then 500chf, I did it last year.
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Old 05.10.2010, 13:21
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Re: New Tax Year - Bonus

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240k per year = 25% is about right.

The pay systems tax at source based on total income in the month - they don't distinquish between the 2 sources of income.

Fill out a tax return at the end of the year - 500chf is cheap. And if you don't know what to fill out - where and for how much - you will need help.

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You'll complete it all, perhaps having spent 500chf on a tax advisor, only to find you paid the right amount! .

I have no idea where your advice came from, but after speaking to a Tax accountant I found

1) I definitely need to claim it back as its over taxed. This is normal with bonuses, some employers will even try to adjust it for you by not taking tax at the end of the year.

2) 500CHF for a tax return is way off, the average is about 200CHF or even lower. This is for an English speaking accountant to collect all the details from you and do your tax return, so all you do is sign and send it off.

I nearly didn’t double check with a professional, people here really need to qualify and be careful about giving this sort of advice.

Last edited by mahmed; 05.10.2010 at 15:34.
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Old 10.10.2010, 19:52
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Re: New Tax Year - Bonus

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1) ..This is normal with bonuses, some employers will even try to adjust it for you by not taking tax at the end of the year.
Does this help?
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Old 13.10.2010, 22:58
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Re: New Tax Year - Bonus

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Does this help?
Not really, it won't claim everything back, so you have to do a tax return anyway.
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