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Old 24.04.2010, 10:25
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Quick question on tax at source and tax on bonus

This morning I opened my payslip and found that my tax at source has increased from 17% to 24%. The only difference this month is the payment of my bonus. Is this the reason for the increase? if so is it normal to tax the gross amount at 24% and not just the bonus part?

My husband also had an increase fom 11% to 15% so we assume it is something to do with the bonus scheme as we did not file tax returns yet.

Many thanks for any advice on this.
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Old 24.04.2010, 10:40
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Re: Quick question on tax at source and tax on bonus

Quellensteuer in Zurich is progressive, based on your montly income.
You can find the rates here: http://www.steueramt.zh.ch/html/steu...if_c_QSt08.pdf

The higher tax this month because of your bonus will be compensated in your tax return.
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Old 28.04.2010, 15:10
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Re: Quick question on tax at source and tax on bonus

You need not to worry. At the end of the year, the rate that is taken in account is the annual rate. So, your company will look your annual salary and the annual rate and do all the adjustment.

It's normal that you pay more as tax in the month where bonuses are paid. Just keep a watch on dec pay slip.
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Old 08.03.2011, 11:57
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Re: Quick question on tax at source and tax on bonus

Just been confronted with this problem.
This practice of taxing the bonus as if it is a monthly rate is crazy. I am now left with the option of waiting 2 years before I get it back.However I understand it is possible (from my tax accountant) to average out the bonus over the 12 months and tax at that rate average. It is not a legal requirement to tax at the bonus rate.
Anyone got any updates on this?
I cannot imagine bankers with huge bonus´s (sp?) allowing this to take place.
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Old 08.03.2011, 12:56
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Re: Quick question on tax at source and tax on bonus

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Just been confronted with this problem.
This practice of taxing the bonus as if it is a monthly rate is crazy. I am now left with the option of waiting 2 years before I get it back.However I understand it is possible (from my tax accountant) to average out the bonus over the 12 months and tax at that rate average. It is not a legal requirement to tax at the bonus rate.
Anyone got any updates on this?
I cannot imagine bankers with huge bonus´s (sp?) allowing this to take place.
Hello Cricketer,

You are taxed at monthly rate till november. In December, the payroll takes in account the yearly income and yearly rate and do the adjustment for the december tax.
You don't need to ask for an adjustment from tax authorities for this. If employer is not adjusting by december, they are not following the rules.

PS : which team you are supporting during this world cup?
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Old 08.03.2011, 17:03
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Re: Quick question on tax at source and tax on bonus

Is this rule per-Kanton and do you know where it is stated?

I work in Zurich and live in SH but have not had any adjustments in Dec in the 2 financial years I've been here; the overpaid tax has been claimed back via my return.

Ta
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Old 08.03.2011, 17:29
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Re: Quick question on tax at source and tax on bonus

Yeah me too and I am not prepared to wait for 1000´s refund in 2 years time.


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Is this rule per-Kanton and do you know where it is stated?

I work in Zurich and live in SH but have not had any adjustments in Dec in the 2 financial years I've been here; the overpaid tax has been claimed back via my return.

Ta
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Old 08.03.2011, 17:38
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Re: Quick question on tax at source and tax on bonus

Luckier in SH - got it back within 2 months of sending off the return!
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Old 08.03.2011, 18:20
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Re: Quick question on tax at source and tax on bonus

I live and work in Zurich and have never heard of or experienced adjustments for anything other than mistakes.

When I first moved here and had a tax meeting with PwC they said the only way to get over payments back was to fill in a tax return or write a letter explaining the unusual circumstances if your pay is under 120k and wait up to two years for a refund.
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Old 08.03.2011, 19:08
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Re: Quick question on tax at source and tax on bonus

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Is this rule per-Kanton and do you know where it is stated?

I work in Zurich and live in SH but have not had any adjustments in Dec in the 2 financial years I've been here; the overpaid tax has been claimed back via my return.

Ta
It's mentioned in the tax directive booklet issued by Geneva canton for people taxed at source.
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Old 31.03.2011, 12:10
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Re: Quick question on tax at source and tax on bonus

This has been happeneing to me for 4 years now. Finally i made a request to the payroll team and the reply was , "As per the Swiss tax laws, all tax is calculated and the rates change depending on your gross salary per month.There is no refund of this tax amount."

I would really appreciate if anyone give me a document which clearly states that the excess tax on the bonus can be refunded at the end of year?

The document provided above says that the tax will be more on the month bonus is paid but no mention that this amount can be refunded.
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Old 31.03.2011, 12:25
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Re: Quick question on tax at source and tax on bonus

do you have to fill in a tax return every year? if you do then any excess tax will eventually be refunded, if you don't then I think you can chose to fill one in, but you'll probably need to get an accountant to do this for you and I'd bet a fair chunk of cash that his fee's would be more then you where inline to get back
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Old 31.03.2011, 12:35
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Re: Quick question on tax at source and tax on bonus

Actually my annual salary is below 120K so i dont fill tax return. But this year there was a good amount of bonus and other extra payouts, which doesnot take the annual salary salary over 120K but the tax deducted is really high!

Is there is any written confirmation that this amount can be claimed back? because my payroll team might do the work for me but they are in the impression that this amount is non-refundable.
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Old 31.03.2011, 12:42
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Re: Quick question on tax at source and tax on bonus

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Actually my annual salary is below 120K so i dont fill tax return. But this year there was a good amount of bonus and other extra payouts, which doesnot take the annual salary salary over 120K but the tax deducted is really high!

Is there is any written confirmation that this amount can be claimed back? because my payroll team might do the work for me but they are in the impression that this amount is non-refundable.

they can't refund it, but if you fill in a tax return then you *might* get something back from the tax office, or you *might* get a bill for underpayment, and a bill from the accountant

but its nothing to do with your payroll department, its true there is nothing they can do for you
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Old 31.03.2011, 13:04
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Re: Quick question on tax at source and tax on bonus

Thanks bigblue2,

The problem now is that the payroll team doesnt compensate me every month as they should (Overtime etc) but accumulate over the year and pay me in one month. So its better i ask them to pay me everymonth instead of going through the *might* process
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Old 31.03.2011, 14:37
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Re: Quick question on tax at source and tax on bonus

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Thanks bigblue2,

The problem now is that the payroll team doesnt compensate me every month as they should (Overtime etc) but accumulate over the year and pay me in one month. So its better i ask them to pay me everymonth instead of going through the *might* process
Hello,
let them take off the taxes on source at the monthly rate till November. But in December (if you are still with the same employer), ask them to take the annual rate in account to find the total annual tax and adjust the tax for the month of december. So you should pay very low tax in december.
This is how it works...
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Old 31.03.2011, 15:13
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Re: Quick question on tax at source and tax on bonus

I encountered the same problem with a sub-120k salary. December was actually the worst as this was the time for both the 13th salary and the christmas bonus. I calculated to be overpaying 500 CHF of tax because of this.

What I'd recommend to do is to lookup what would be your tax level if you had the bonus equally distributed over the whole year. The resulting difference could as well be negligible, depending on your salary, the amount of your bonus, whether you are married, pay church tax etc. I calculated this for one other person from work, and she could have saved only 30 CHF.

My employer agreed to pay my 13th salary in monthy installments over the year, but the bonus will have to be paid instantly.

The only way to get it back is to file for a tax return, but I probably wont bother as the amount is very small.
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Old 28.04.2011, 13:00
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Re: Quick question on tax at source and tax on bonus

Contrary to what happened last year (no refund through payroll for excess Quellensteuer), our new payroll provider has just refunded the excess tax they deducted last month.

It appeared on the payslip as 'Quellensteuer Korrektion (Jan-March)', so looks like they are doing it every quarter.

Although I didn't ask them, it's gotta be worth pestering your company/payroll provider to do this for you...
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Old 28.04.2011, 14:24
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Re: Quick question on tax at source and tax on bonus

This may be how it works in Geneva. In Zürich this is not how it works. There you are always taxed on the monthly paid out amount.

http://www.stadt-zuerich.ch/fd/de/in...lenbesteuerung


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