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Old 12.01.2021, 17:53
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Just got my C permit, shall I inform my employer immediately?

My current B permit is still valid till August, I live in canton A and work in canton B, I will move to canton B or canton C by latest May, as soon as I find a good apartment there.

It seems to me that for C permit, tax is not deducted at source. Is it purely positive or there is also a downside? are there other positive/negative implications if I inform my employer now?

Thanks for your analysis
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Old 12.01.2021, 18:00
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Re: Just got my C permit, shall I inform my employer immediately?

If you just got your C, it replaces your B (B no longer valid). You must tell your employer immediately, so they stop paying your tax for you right away.
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Old 12.01.2021, 18:15
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Re: Just got my C permit, shall I inform my employer immediately?

You might end up paying more tax on a C but you're now "permanent resident". If you move cantons be aware that each canton has their own rules about tax and when to pay it but it might not matter so much as you got your C permit early in the year. I believe you can continue on tax at source if you ask for it but you'll still need to do a tax declaration for each year.
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Old 12.01.2021, 18:38
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Re: Just got my C permit, shall I inform my employer immediately?

I informed my employer immediately but they said that they could not act on that alone and needed a confirmation from the tax office.
The tax office sent them a letter in a couple of weeks saying that they should stop deducting tax at source starting January (I have had a C permit since previous November).
So it wasn't applied instantly (but I was spared the mess of paying tax at source for only part of the year). Of course this will probably vary per canton and maybe commune as well (mine was Zürich city).
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Old 12.01.2021, 19:10
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Re: Just got my C permit, shall I inform my employer immediately?

It's worth bearing in mind that in any event you'll end up paying the whole year's tax in whatever canton you live in at Dec 31st, so there's no possibility of gaining anything by waiting.

On the contrary, if you can get your employer to stop making deductions immediately, i.e. for your January salary, then you'll have a much simpler calculation to do at the year end. If you've already paid some quellensteuer it will need to be reclaimed from wherever you paid it. Not difficult, but makes life easier if you can avoid it, and of course you'll be sitting on the extra cash yourself in the interim.

As already pointed out, tax regimes vary tremendously by canton, even by commune; not just how much you pay, but when you pay it. For example when we moved from BS to OW in 2007 we ended up paying nearly three years of tax within one twelve month period, which coupled with the 20% deposit we put down on the flat we'd just bought put a severe strain on the bank balance. BS was payable after the year end, whereas OW demanded payments in advance based on estimated earnings (and we were already a year late paying the Basel tax, for which we can't blame anyone but ourselves, of course). Just something to check out when you eventually move.
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Old 13.01.2021, 12:04
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Re: Just got my C permit, shall I inform my employer immediately?

Thanks a lot for your detailed replies. To clarify, I received my C permit mid December, and my aim is to avoid spending energy on admin stuff, like don't do any admin thing when possible , . the question was to understand the pros/cons to inform my employer immediately. If I understand you guys correctly, there are only pros and NO cons?

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If you just got your C, it replaces your B (B no longer valid). You must tell your employer immediately, so they stop paying your tax for you right away.
I still physically have the B permit which ends in August

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You might end up paying more tax on a C but you're now "permanent resident". If you move cantons be aware that each canton has their own rules about tax and when to pay it but it might not matter so much as you got your C permit early in the year. I believe you can continue on tax at source if you ask for it but you'll still need to do a tax declaration for each year.
if I HAVE TO do this tax declaration then I don't see any advantage to ask for tax at source

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I informed my employer immediately but they said that they could not act on that alone and needed a confirmation from the tax office.
The tax office sent them a letter in a couple of weeks saying that they should stop deducting tax at source starting January (I have had a C permit since previous November).
So it wasn't applied instantly (but I was spared the mess of paying tax at source for only part of the year). Of course this will probably vary per canton and maybe commune as well (mine was Zürich city).
mess of paying tax at source? I am not sure I understand what you mean by mess.

Quote:
It's worth bearing in mind that in any event you'll end up paying the whole year's tax in whatever canton you live in at Dec 31st so there's no possibility of gaining anything by waiting.

On the contrary, if you can get your employer to stop making deductions immediately, i.e. for your January salary, then you'll have a much simpler calculation to do at the year end. If you've already paid some quellensteuer it will need to be reclaimed from wherever you paid it. Not difficult, but makes life easier if you can avoid it, and of course you'll be sitting on the extra cash yourself in the interim.

As already pointed out, tax regimes vary tremendously by canton, even by commune; not just how much you pay, but when you pay it. For example when we moved from BS to OW in 2007 we ended up paying nearly three years of tax within one twelve month period, which coupled with the 20% deposit we put down on the flat we'd just bought put a severe strain on the bank balance. BS was payable after the year end, whereas OW demanded payments in advance based on estimated earnings (and we were already a year late paying the Basel tax, for which we can't blame anyone but ourselves, of course). Just something to check out when you eventually move.
Thanks a lot for your detailed information, by "the whole year's tax" I assume you are only talking about the action of tax declaration? the amount should be proportional to my stay right? like I only pay tax to a canton from the month I live there
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Old 13.01.2021, 12:23
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Re: Just got my C permit, shall I inform my employer immediately?

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I still physically have the B permit which ends in August
No, as Island Monkey said in the first reply to your question, it's already been superseded by the C permit. When it was due to expire is irrelevant, now you've replaced it with the C permit.
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Thanks a lot for your detailed information, by "the whole year's tax" I assume you are only talking about the action of tax declaration? the amount should be proportional to my stay right? like I only pay tax to a canton from the month I live there
No, I mean "the whole year's tax". You make the tax declaration in the commune/canton of your residence at the end of the year, and all of your tax is paid based on this. Doesn't make any difference where you were living for most of the year.

Make sure you understand this well - if you're moving from a higher tax paying area to a lower one it's best to do so before Dec 31st, but if you're moving to a more expensive tax area you're better off waiting for the new year. Our last such move was done on Jan 1st for just this reason.

The communes may then redistribute some of the tax based on how long you were in each place, but this is invisible to you and completely independent of your actual tax declaration and payments.
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Old 13.01.2021, 12:33
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Re: Just got my C permit, shall I inform my employer immediately?

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Make sure you understand this well - if you're moving from a higher tax paying area to a lower one it's best to do so before Dec 31st, but if you're moving to a more expensive tax area you're better off waiting for the new year. Our last such move was done on Jan 1st for just this reason.

The communes may then redistribute some of the tax based on how long you were in each placed, but this is invisible to you and completely independent of your actual tax declaration and payments.
If you move across cantons than the place where you live on December 31 is relevant (consider you do not move a second time in the destination canton). They get the full tax, the other commune and canton get nill.

If you move within the same canton to another commune you have to lock up the rules. It can be place of residence at January 1st (or first place of residence in the year), place of residency at December 31, or pro rata for each commune.
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Old 13.01.2021, 12:43
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Re: Just got my C permit, shall I inform my employer immediately?

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mess of paying tax at source? I am not sure I understand what you mean by mess.
Paying tax at source the whole year is okay. Not paying tax at source at all is also okay (for me personally, YMMV).
Paying tax at source for only part of the year is messy because:
  • it's not exactly clear what part of the paid tax at source goes where (federal/cantonal tax) and it's harder to calculate what you owe the canton. This is important since it's usually worth it to pre-pay the cantonal tax when you're not taxed at source and not wait for the final bill including some interest in their favor.
  • the tax office takes way too long to process your tax return because it goes through both the tax-at-source (1-2 years in ZH) and ordinary tax
    (~6 months in ZH) subdepartments.
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Old 13.01.2021, 12:44
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Re: Just got my C permit, shall I inform my employer immediately?

you need to tell your employer ASAP. Otherwise you are creating a headache for them if they need to reverse the quellensteuer payments.


It makes no difference to you - you'll need to do a tax return and that will be sorted via the tax office of your new Gemeinde... if you're not sure, send them an email or make a phone call - our local tax office guy is super (almost-too) helpful!
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Old 13.01.2021, 13:19
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Re: Just got my C permit, shall I inform my employer immediately?

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If you just got your C, it replaces your B (B no longer valid). You must tell your employer immediately, so they stop paying your tax for you right away.
I'm not sure if this is necessary.

When I went from B to C I didn't tell my employer until several months later (end of year) and somehow it didn't seem to be a problem. The excess tax payed was credited to me on the final tax bill so I guess there was some sort of automatic internal handover.
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Old 13.01.2021, 13:51
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Re: Just got my C permit, shall I inform my employer immediately?

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you need to tell your employer ASAP. Otherwise you are creating a headache for them if they need to reverse the quellensteuer payments.
Pretty sure they don't, it just all gets factored in when you pay the final bill in the new canton. The employer simply stops paying, but as it's your money, not theirs, it really doesn't affect them.
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