Gemeinde Taxes - Advance Payment & Refund

Finance, Taxes, Banking, Insurance and Retirement
1
Hi All,

I am looking for some advise from the forum on the normal practice in Switzerland if someone has had a similar experience.

Quick background - We live in Gemeinde Binningen in BL. For the last couple of years, we received an advance tax invoice (i.e. in Jan 2021 for tax year 2021) for the gemeinde tax. While we paid those invoices, a certain portion of the withholding tax is also credited to the gemeinde. Due to this, we have paid the gemeinde nearly double the tax that we owe to them. They just carry forward the additional amount to the next tax year.

Given that there is a significant balance (CHF 10k+) in our favour -

1. Are we required to pay the advance invoice for 2022? Note that the withholding tax will cover the taxes due for 2022.

2. Should we ask the gemeinde for a refund of the amount in our favour?

Is there an accepted norm regarding this with the tax authorities?

2
I always ask for a refund of overpaid taxes. Not sure if this is the norm but they are usually very quick to pay out so I can't be the only one.

I suggest sending them an email asking for a refund. Worst case they might make you wait until the final calculation in 2023 for 2022.

3
You can ask for the excess tax paid to be refunded. You can also ask for the amount of advance tax payments to be adjusted, so that there will be less discrepancy at the end of the year.

On the whole the Swiss tax administrations are helpful.

4
If you want a refund you just have to ask for it. It might be that something isn't set up right - it strikes me as odd that you're on Quellensteuer (apparently) and you're pay advance tax to such an extent that the amount is almost double what is owed.

I've found the Binningen tax office to be friendly and helpful. Go and talk to them. Some even speak English!

5
Can happen, Quellensteuer is calculated monthly so if you get a big payment in a month like a bonus then the tax that month will be very high.

6
In BS, we always get a questionnaire: do you want your surplus tax refunded (send us back a form), or credited to the next tax period?

It's a simple system and works well.

7
We used to get that. I guess they decided if we really want the money we'll ask for it!

8
My wife and I are on B permits and hence the Quellensteuer.

What I have noticed is that the advance tax invoice is based on the previous definitive tax statement and does not consider the withholding tax that will be paid during the course of the year. So, we end up paying both the advance and the withholding which makes it double. Hence, I also had the question of whether paying the advance is compulsory if we are on Quellensteuer?

Agree that the tax office folks are helpful and very responsive, was just wondering on the normal practice regarding refunds. Will ask them for the refund, thanks!

9
Quick update - We asked for the refund by e-mail and the money was in our bank account 2 days later. Super efficient!