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Old 16.07.2020, 15:00
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Deregistration and my massive tax bill

We're American citizens leaving Switzerland in about 45 days, and moving back to America.

My 2019 tax bill is enormous, since I'm an independent contract worker and have not paid taxes on those earnings. We had a professional at EY help us with taxes, which we've submitted.

But here's my question: The EY tax people said it may be a year or two before we need to pay the tax bill, since it takes that long for them to review it. (They said the interest rate it accumulates is negligible.) But now I'm wondering, will we actually need to pay it upon departure in the next month or two?

If so, I better start selling everything I own, and then some.....
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Old 16.07.2020, 15:05
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Re: Deregistration and my massive tax bill

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We're American citizens leaving Switzerland in about 45 days, and moving back to America.

My 2019 tax bill is enormous, since I'm an independent contract worker and have not paid taxes on those earnings. We had a professional at EY help us with taxes, which we've submitted.

But here's my question: The EY tax people said it may be a year or two before we need to pay the tax bill, since it takes that long for them to review it. (They said the interest rate it accumulates is negligible.) But now I'm wondering, will we actually need to pay it upon departure in the next month or two?

If so, I better start selling everything I own, and then some.....
Yes you will have to pay last years plus a full deposit for this years if you want a leaving certificate.
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Old 16.07.2020, 15:14
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Re: Deregistration and my massive tax bill

Did no one advise you to set aside some money to cover your taxes when you were paid for your work? Would have been the sensible thing to do.
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Old 16.07.2020, 15:19
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Re: Deregistration and my massive tax bill

Just pay late.

Tom
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Old 16.07.2020, 15:21
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Re: Deregistration and my massive tax bill

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Did no one advise you to set aside some money to cover your taxes when you were paid for your work? Would have been the sensible thing to do.
I paid 2013-2018 last year, as they couldn't be arsed to calculate my taxes, and I couldn't be arsed to prepay.

Interest was a few hundred CHF total, interest due starting the date they calculated the bills, not the five year old tax date.

Tom
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Old 16.07.2020, 15:39
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Re: Deregistration and my massive tax bill

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Just pay late.

Tom

Difficult as OP wants to leave the country. AFAIK tax offices insist on immediate (or at least quick) payment.
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Old 16.07.2020, 15:40
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Re: Deregistration and my massive tax bill

I'm not convinced you need a leaving certificate if you're heading back home. The US probably wouldn't know what to do with it anyway

I've moved between so many places I'd just leave EY to handle it. The tax office will correspond with them and you'll announce your departure from the commune. You can even announce it by mail when you get back to the USA.

You have 2 options.
1. Pay a sum on account which will pay you interest pending the final bill
2. Pay nothing and when the final bill arrives plead poverty and ask to pay in installments. Actually you don''t even need to plead poverty just ask. 6 months is pretty automatic and if it's really big stretch it out over 2 years.

Finally, interest only applies from when the tax is due. If they take 12 months to make the calculation that's their problem. You then have 30 days and from then the clock starts ticking.
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Old 16.07.2020, 15:57
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Re: Deregistration and my massive tax bill

Sure, I know I have to pay it, but there's a massive difference in having to pay this now versus delaying it for a year or two, which is when EY suggested the bill would be due.
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Old 16.07.2020, 16:33
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Re: Deregistration and my massive tax bill

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I paid 2013-2018 last year, as they couldn't be arsed to calculate my taxes, and I couldn't be arsed to prepay.

Interest was a few hundred CHF total, interest due starting the date they calculated the bills, not the five year old tax date.

Tom
I'm not talking pre-paying, I talking setting a sum aside in a separate account to cover such things. I've been doing it for years for our taxes. Set aside a set amount or what you think the % of what you earnt will be tax; it's easy peasy to do.
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Old 16.07.2020, 17:18
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Re: Deregistration and my massive tax bill

Been there, done that in 2017. You go to the office to deregister and they send you to a room.with a tax person who estimates your taxes for this year (more on this below). Then looks quickly at previous years, makes an estimate and presents you with a bill.

Once you paid it, you get your leaving certificate which you need for all sorts of things like cancelling health insurance etc.

This year tax bill will be done as follows:
Income earned until now is extrapolated to calculate your tax rate which is then applied to actual amount earned (Switzerland wants to avoid unfair advantage by having 2 half years of lower income). You can challenge some things but most likely will not get much better.

So brace....
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Old 16.07.2020, 17:35
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Re: Deregistration and my massive tax bill

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I'm not convinced you need a leaving certificate if you're heading back home...
Sounds like it's needed to tidy up loose ends here in CH (emphasis mine):

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Been there, done that in 2017. You go to the office to deregister and they send you to a room.with a tax person who estimates your taxes for this year (more on this below). Then looks quickly at previous years, makes an estimate and presents you with a bill.

Once you paid it, you get your leaving certificate which you need for all sorts of things like cancelling health insurance etc....
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Old 16.07.2020, 18:06
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Re: Deregistration and my massive tax bill

Well if you earned X then you have enough money to pay taxes over X, so what is the problem ?
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Old 16.07.2020, 18:15
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Re: Deregistration and my massive tax bill

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Well if you earned X then you have enough money to pay taxes over X, so what is the problem ?
He spent it
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Old 16.07.2020, 18:21
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Re: Deregistration and my massive tax bill

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I'm not talking pre-paying
Nor am I, I am talking about paying only after the final bill is made.

Tom
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Old 17.07.2020, 09:12
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Re: Deregistration and my massive tax bill

Thanks. I guess I'm glad I asked. I didn't even think about 2020 taxes until this thread. It sounds like EY really missed this one...

One follow up: Do you recall what the payment methods were for this? If it needs to come from a Swiss account, I'm going to have to transfer money here....
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Old 17.07.2020, 10:28
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Re: Deregistration and my massive tax bill

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Yes you will have to pay last years plus a full deposit for this years if you want a leaving certificate.
That is incorrect. They can't stop you from having your leaving certificate due to taxes


http://relevancy.bger.ch/php/clir/ht...F127-I-97%3Ade

https://www.englishforum.ch/2313290-post8.html
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Old 17.07.2020, 10:34
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Re: Deregistration and my massive tax bill

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I'm not convinced you need a leaving certificate if you're heading back home. The US probably wouldn't know what to do with it anyway

I've moved between so many places I'd just leave EY to handle it. The tax office will correspond with them and you'll announce your departure from the commune. You can even announce it by mail when you get back to the USA.

You have 2 options.
1. Pay a sum on account which will pay you interest pending the final bill
2. Pay nothing and when the final bill arrives plead poverty and ask to pay in installments. Actually you don''t even need to plead poverty just ask. 6 months is pretty automatic and if it's really big stretch it out over 2 years.

Finally, interest only applies from when the tax is due. If they take 12 months to make the calculation that's their problem. You then have 30 days and from then the clock starts ticking.
You'd need one to get your pillar 2 contributions out. They could probably help pay the tax bill!
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Old 17.07.2020, 11:55
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Re: Deregistration and my massive tax bill

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That is incorrect. They can't stop you from having your leaving certificate due to taxes
Correct.
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Old 17.07.2020, 11:59
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Re: Deregistration and my massive tax bill

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Thanks. I guess I'm glad I asked. I didn't even think about 2020 taxes until this thread. It sounds like EY really missed this one...

One follow up: Do you recall what the payment methods were for this? If it needs to come from a Swiss account, I'm going to have to transfer money here....
Won't be easy since you'll have to close your bank account here. American citizens moving back to the States - you'll be told to close the account asap. Even if you don't tell them and they find out they'll likely close it.

Best thing if you can set it up when you get to the States is have the tax office send you the orange slip which will have their bank account info and address on it plus a reference number for them which you'll need to add to the details so they know who the payment is from. You'd also need their bank's IBAN details, assuming your US bank can manage to send funds abroad. Might be a good idea to try and set up an account with the US branches of either UBS or Credit Suisse if possible, that should make transferring any funds easier.
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Old 17.07.2020, 12:29
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Re: Deregistration and my massive tax bill

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We're American citizens leaving Switzerland in about 45 days, and moving back to America.

My 2019 tax bill is enormous, since I'm an independent contract worker and have not paid taxes on those earnings. We had a professional at EY help us with taxes, which we've submitted.

But here's my question: The EY tax people said it may be a year or two before we need to pay the tax bill, since it takes that long for them to review it. (They said the interest rate it accumulates is negligible.) But now I'm wondering, will we actually need to pay it upon departure in the next month or two?

If so, I better start selling everything I own, and then some.....
What were you going to do, if you remained living here, when the tax bill came?
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