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Old 10.09.2011, 23:13
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Tax on accommodation provided by employer

1) If my overseas employer provides me with rented accommodation, will I be taxed? If so at what rate?

2) If my overseas employer buys a house in which I am allowed to live rent free while in Switzerland, will I be taxed? If so at what rate?

Cheers,


Micky G
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Old 10.09.2011, 23:15
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Re: Tax on accommodation provided by employer

You mean.....you'd like some help from us please?
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Old 10.09.2011, 23:19
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Re: Tax on accommodation provided by employer

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1) If my overseas employer provides me with rented accommodation, will I be taxed? If so at what rate?

2) If my overseas employer buys a house in which I am allowed to live rent free while in Switzerland, will I be taxed? If so at what rate?

Cheers,


Micky G
The rent or notional rent will be added to your salary, if we don't know EXACTLY how much you will earn, & where you live we can't do the figures.
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Old 10.09.2011, 23:20
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Re: Tax on accommodation provided by employer

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1) If my overseas employer provides me with rented accommodation, will I be taxed? If so at what rate?

2) If my overseas employer buys a house in which I am allowed to live rent free while in Switzerland, will I be taxed? If so at what rate?

Cheers,


Micky G
ask for the employer to gross up the benefit to cover tax on accommodation. problem solved.
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Old 10.09.2011, 23:23
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Re: Tax on accommodation provided by employer

- Yes, is that so strange that I would like to find out what the score is before I decide whether to make the move?

Is it such a strange, 'never been done before' scenario?

Is it a completely 'can only be addressed by a qualified professional' type of question?

Come on!
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Old 10.09.2011, 23:24
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Re: Tax on accommodation provided by employer

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- Yes, is that so strange that I would like to find out what the score is before I decide whether to make the move?

Is it such a strange, 'never been done before' scenario?

Is it a completely 'can only be addressed by a qualified professional' type of question?

Come on!
Give us the numbers & we can do the maths-
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Old 10.09.2011, 23:26
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Re: Tax on accommodation provided by employer

[HTML][/HTML]The rent or notional rent will be added to your salary, if we don't know EXACTLY how much you will earn, & where you live we can't do the figures. [HTML][/HTML]

- that's what I needed, thanks.

Micky G
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Old 10.09.2011, 23:29
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Re: Tax on accommodation provided by employer

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[HTML][/HTML]The rent or notional rent will be added to your salary, if we don't know EXACTLY how much you will earn, & where you live we can't do the figures. [HTML][/HTML]

- that's what I needed, thanks.

Micky G
Pretty much exactly the same as in the UK, taxation on benefits in kind. Depending on salary you may be taxed at source or may have to file a return on your world wide earnings.

Of course you have to leave the UK permanently & make a real break in your life or you will still be liable to taxes in the UK as your just away working, but Ordinarily resident in the UK. This all may well change after the next budget, however it's not retrospective.
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Old 10.09.2011, 23:31
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Re: Tax on accommodation provided by employer

The grossed up salary (with the rental included) will push you up a few tax brackets - the tax here is 'progressive' so gets higher as you go up...the 'discount' or 'rent' will be taxed as if it was being paid to you...

Tax and other compulsory stuff (unemployment insurance, pension contributions) are somewhere between 15-30% of your total salary...

Also, if you pay 'tax at source' (Quellensteuer) and under 120K then you won't be required to submit a tax return, but if you earn over that amount (or if your grossed up salary with the rental added pushes you over the limit) then you'll have to submit a tax return...

You might be lucky and end up then getting a tax refund, but if you live and work inside city Zurich then the tax rate is higher than the Quellensteur, and you'll probably get another tax bill once the tax return is done (plus the cost of preparing the tax return) and that may well hurt...

How do I know this ?

Because my husband is currently having this mess sorted out for two years of incorrectly deducted tax, and the adjustment is estimated to be between 9000 - 12,000 chf, payable to the tax department...ouch!
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Old 10.09.2011, 23:35
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Re: Tax on accommodation provided by employer

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How do I know this ?

Because my husband is currently having this mess sorted out for two years of incorrectly deducted tax, and the adjustment is estimated to be between 9000 - 12,000 chf, payable to the tax department...ouch!
That is the issue, your married & both working, Switzerland pays high salaries & assumes a wife will stay at home, it's all rather old fashioned.
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Old 11.09.2011, 00:03
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Re: Tax on accommodation provided by employer

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That is the issue, your married & both working, Switzerland pays high salaries & assumes a wife will stay at home, it's all rather old fashioned.
Nope, the error is on his tax calculation, it has to do with the employer failing to gross up the salary and deduct from that grossed amount. It could easily happen to anyone who is paying tax at source 'Quellensteuer' - if your employer fails to take out enough tax, you'll get a nasty surprise when you have to submit your return...or if you don't break the 120K threshold, sooner or later someone will discover the error....
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