sorry for simple question, but I didn't find answer on it on google or forum:
If I'll get permit C, I'll have to pay more taxes, due to the fact that I'll have to pay income tax instead of my employer, right?
Because as I know under permit B employer pays income tax(Quellensteuer) and I got reduction from AHV\ALC, etc, right? But when I get C, I'll have to fill in return bill and pay income tax(state + canton + commune) IN ADDITION TO AHV\ALC, etc, right?
Your employer deducts taxes and insurances from YOUR salary before you get it. So you’re paying them, not the employer. It’s the the method of payment that changes - from being taken out of your salary each month to you having to fill in a tax return and then pay whatever you owe once the return is processed. That can also be done monthly, it doesn’t have to be paid in a lump sum though you can if you want to.
What you’ll pay depends on the canton and gemeinde you live in. There are some deductions you can make which may mean you actually pay less. But there’s no guarantee that’ll be the case since it depends on your individual circumstances, the canton and gemeinde.
Wrong. Your employer pays your income tax for you at the moment by deducting it from your salary. When you are on a C permit, the income tax won't be deducted from your salary - the tax office will come to your for it.
The tax basis for B permit holders is not always the same as for C holders, so you may pay slightly more or slightly less tax than before.
I am looking forward to get the C permit! As my wife has some income as self-employed, we are doing tax forms since we arrived in CH, so that hassle is known... But from her job she has a very varying income, so one month a lot of quellensteuer, other month about 10 SFR. Also my 13th month in november will cost me a lot o quellensteuer in that month. From next year on, with C permit, all the income is in one big pot and I am quite sure the paid taxes will be lower (Zürich city).
Thanks for the reply. Yes, people told me that indeed, but I did some calculations on the basis of our taxes 2015. Based on our anual gross income, obtained from the tx form we filled in, we would have to pay about 5000CHF according to https://www.steueramt.zh.ch/internet...desteuern.html , but (adding all our quellensteuer together) we paid about 6000CHF. Not a big difference, but I am sure not afraid of going to C permit
Wait a second... So when you go from withholding tax (Quellensteuer) to no withholding tax, you still have to do more or less the same amount of tax contribution + the other contributions like AHV/ALV so the "effective" net salary (In layman's terms the money you get to spend) stays the same?
Whenever I looked at salary calculators with the "withholding tax" option, I assumed once you go C permit, you'd get to keep the withholding tax for yourself and only have to pay the other contributions
Silly me.
So once you're on C permit, who's paying AHV/ALB/Pension fund?
AHV + ALV + UVG + NBU + Pension (BVG) are all fixed rates (and country and employer level)
Your tax changes based on Gemeinde (and kids, married or whatever, other dependents, property, other income, moon phase, airspeed of a swallow) so you're on your own there.
Your money to spend is the same except for the generic Quellensteuer rate compared to the "standard" (tax return) rates
The info is already there, so I hope not to contradict it.
"Wrong. Your employer pays your income tax for you at the moment by deducting it from your salary. When you are on a C permit, the income tax won't be deducted from your salary - the tax office will come to your for it. "
So, AHV, ALV Pension fund are still deducted through the employer. He wont deduct the quellensteuer anymore, but you will have to pay a "similar" value to the tax office.
Standard taxation can be lower, higher, or nearly the same as tax at source (Sub 120k income a.k.a English Forum poverty line).
Tax at source:
Is a cantonal average, has implied flat rate deductions, is calculated based on gross salary,
Standard taxation:
Depends on commune, has flat rate as well as individual deductions, is calculated on (net income - deductions).
So depending on the possible deductions, your actual net salary and the actual tax rate of your commune you might pay more or less tax with regular taxation compared to tax at source alone.
For those on tax at source but who must still file a tax return, they either get reimbursed or must pay the difference.
Best is to download your cantons tax return software and start playing with it. Then you will get a better picture what it means to switch to C and being regular taxed.
You sort of will, in that the tax office doesn't bill you monthly. When you're taxed at source the funds come out up front. So yes, your paycheck will look bigger but don't go out and buy a Bugatti just yet.
In Bern we get tax bills 3-4 times per year. Best to save up so when that bill for X thousand arrives you don't have a heart attack wondering how to pay.
I get 9 monthly payment slip - May to the following January.
Good idea to put money aside - work out what you pay for taxes from your current salary slips and put that into a separate bank or post office account once you change over. Or even start now, it’s always useful to have something stashed away for a rainy day as they say. You’d be surprised at how quickly it can build up.