I have a quick question. I am negotiating with a swiss company. My salary will be 300k annually. I am wondering is there any tax differentiation between working permits, for example, B and C.
Hello,
Yes there is (at least when you pay tax at source) but you will not get a C immediately and with that amount of income you need to file taxes anyway.
At that salary you don't really care, but no not really as you'll have to submit returns in any case. I'm looking forward to the posts advising you to shop across the border to save money.
On that income you’ll save far more money living in a central Swiss canton with low taxes and being too far away from the border for it to be sensible to cross-border shop
Unless you're a US-person, where Uncle Sam will pocket the difference.
Not only the difference, but in some cases a bit more on top as well.
A US citizen on a higher than average income might find that investing in professional tax advise prior to finalizing decisions around the move, from someone qualified in both US and CH tax systems, with an eye to all the factors involved, would be money well spent.
Only in terms of when you pre-pay/pay the taxes, the final amount will be the same
I did my tax declarations myself ever since I had a B, and now since many years with C, and can't imagine where the final difference may come from.
With a B, tax on source deductions are made automatically by employer at each payroll.
The final (so-called "definitive") amount for the tax year, calculated after tax declaration, may (and will) differ from what have been deducted by employer, and you will either get a refund or, more likely, an extra bill for few thousand francs to cober this difference.
With a C, you pay tax on source pretty much when you feel like it - even in advance for the full year ahead (using a "provisionary" bill), adjusting the difference after you receive a "definitive" bill. Some C permit holders pay 1-2 years later, along with 4% interest for delayed payments.
Did you realise that neither you nor your employer can decide about whether to apply for a B or a C.? The decision is taken by the migration authorities.
Typically, one has to have held a B for five continuous years, in order to qualify to apply for a C. Your question is fair enough, though, if you're wanting to understand what might change, for you, after your five "B" years have passed.
Unless they are an university professor they will get 100% a B.
If they are an university professor they will get 100% a C.
As they earn more than 120k per year, they have to file a regular return and will be taxed at the regular rates regardless of the actual permit.
In short: The difference in Francs is nearly 0 CHF. However, when on B or L one has to pay tax at source as a collateral. Once the tax declaration has been processed the difference will be reimbursed or a bill will be sent. The only difference is due to lost investment opportunities because of the tax at source pre-payment.
I am a city person, but where would you recommend it?