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Old 21.06.2007, 15:52
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Tax at source + working/living in different cantons?

I started a thread in the Visa forum regarding living in one canton while working in another, but this question is more tax related. I will be working in Zurich but would like to live in Aargau. I will be taxed at source in Zurich, so I assume I will be taxed for Canton Zurich. Is that a proper assumption, or will a company tax at source dependent on one's address? If not, does anyone know how one goes about paying taxes to the canton in which they reside? Will I have to pay out of pocket in Aargau and just get my taxes back from Zurich?

Thanks
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Old 21.06.2007, 15:54
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Re: Tax at source + working/living in different cantons?

You're taxed based on where you live, not where you work.
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Old 21.06.2007, 16:04
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Re: Tax at source + working/living in different cantons?

as a non-EU permit holder, do ensure that you have the correct permit to do this.
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Old 21.06.2007, 16:14
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Re: Tax at source + working/living in different cantons?

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I started a thread in the Visa forum regarding living in one canton while working in another, but this question is more tax related. I will be working in Zurich but would like to live in Aargau. I will be taxed at source in Zurich, so I assume I will be taxed for Canton Zurich. Is that a proper assumption, or will a company tax at source dependent on one's address? If not, does anyone know how one goes about paying taxes to the canton in which they reside? Will I have to pay out of pocket in Aargau and just get my taxes back from Zurich?

Thanks
You will be taxed for Argau, not Zurich.

I can tell you how it works in the payroll system we use. When I enter an employee I check a box for tax at source and then enter the canton code for the canton where the employee is resident and select the appropriate tax code(s). This then calculates the deductions based on the canton of residence.

Your employer will deduct the taxes and the Swiss tax system will make sure that the right canton gets the funds. You can just forget about it .
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Old 21.06.2007, 16:17
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Re: Tax at source + working/living in different cantons?

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as a non-EU permit holder, do ensure that you have the correct permit to do this.

One tip, drive the application for permission to live in a different canton from the local residence office in your location in Argau. It is surprising how helpful they will be - they want your taxes .
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Old 21.06.2007, 16:30
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Re: Tax at source + working/living in different cantons?

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You will be taxed for Argau, not Zurich.
I can tell you how it works in the payroll system we use. When I enter an employee I check a box for tax at source and then enter the canton code for the canton where the employee is resident and select the appropriate tax code(s). This then calculates the deductions based on the canton of residence.

Your employer will deduct the taxes and the Swiss tax system will make sure that the right canton gets the funds. You can just forget about it .
Exactly what I wanted to know. Thanks, bob.
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Old 21.06.2007, 20:37
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Re: Tax at source + working/living in different cantons?

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Your employer will deduct the taxes and the Swiss tax system will make sure that the right canton gets the funds. You can just forget about it .
Forget about it right up until the time they send you a tax demand of course

There's no automated way for one canton to send the tax to another canton and it does get lost between the two cantons. If you file a tax return in your canton of residence and assume that they'll trot along to the canton you work in and ask for the money you're likely to get a shock. That shock will be a bill for the tax in your canton of residence.

There's no particular reason any employer will deduct the right tax for where you live, if they do that's absolutely great but it's not any sort of requirement.

Personally, I get an accountant to sort it out now for us, it's just easier.
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Old 21.06.2007, 22:59
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Re: Tax at source + working/living in different cantons?

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Personally, I get an accountant to sort it out now for us, it's just easier.
Yeah. Let's call that "Plan B"
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Old 21.06.2007, 23:38
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Re: Tax at source + working/living in different cantons?

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Yeah. Let's call that "Plan B"
You could if your "Plan A" involves paying tax at source and then getting a demand from your local canton for the whole years tax along with the federal and commune tax
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Old 22.06.2007, 04:48
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Re: Tax at source + working/living in different cantons?

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You could if your "Plan A" involves paying tax at source and then getting a demand from your local canton for the whole years tax along with the federal and commune tax
Well, that's not the plan, per se. My plan, as it were, is to move CH and whilst walking down the street a trip over a bag of cash. Then, after making sure there's no dead body around, ala a mob hit, take the cash an run. I'm guessing that's pretty improbable though.

That being said, I'd love for everything to fall in place and have the taxes taken at source. I'm sure since I'm a newbie I'll have to get an accountant anyway.
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Old 22.06.2007, 17:12
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Re: Tax at source + working/living in different cantons?

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Well, that's not the plan, per se. My plan, as it were, is to move CH and whilst walking down the street a trip over a bag of cash. Then, after making sure there's no dead body around, ala a mob hit, take the cash an run. I'm guessing that's pretty improbable though.

That being said, I'd love for everything to fall in place and have the taxes taken at source. I'm sure since I'm a newbie I'll have to get an accountant anyway.
Well, my plan it so win the lottery. I just don't understand what I'm doing wrong... I mean, I buy the ticket...
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Old 22.06.2007, 22:59
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Re: Tax at source + working/living in different cantons?

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Well, my plan it so win the lottery. I just don't understand what I'm doing wrong... I mean, I buy the ticket...
You have to buy tickets???? No wonder I never win that damn thing.
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Old 16.08.2007, 15:49
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Re: Tax at source + working/living in different cantons?

I have few specific questions about changing between different zones within the same canton in a company that charges taxes at source. For e.g. from Zurich city to Thalwil. I saw from the Credit Suisse tax calculator that there is a significant reduction in taxes (around a few thousand francs per year) if you actually move to a different zone.

(a) For such persons moving to a different zone within the Zurich canton, would it affect the tax at source? Or is it totally independent of which zone you stay in, and only dependent on the canton average because the company is based out of Zurich city?

(b) If it does not affect the source tax rate, which is only an average for the canton and not dependent on where I stay, is it possible to file a return later on for claiming the difference.

(c) In the case my wife also works, how is the tax deduction at source achieved? I find that she is taxed at a rate lesser but that may be because her gross is lesser as well. I am guessing that income tax is on the total household income. And also I figured that for a married couple for the same income compared to say a single person's income, the taxes are lesser by some amount. Is the company supposed to calculate the combined income and then charge taxes differently?


I am a non-EU national holding an L-Card. My wife is also on a separate L-card.
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Old 16.08.2007, 16:07
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Re: Tax at source + working/living in different cantons?

do check that you can actually move within the canton before actually committing to move. You might be restricted on an L - in theory though the canton is the one to say yes and of course they will still get tax from you.
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Old 16.08.2007, 17:35
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Re: Tax at source + working/living in different cantons?

I do know that I can move within the canton of Zurich. Only if it is outside the canton itself, I will have to apply for special permission etc. And the cantonal taxes anyways will go the Zurich authorities. But the region change wont' benefit me is it?
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