Hello everyone,
I have a question regarding the taxation upon obtaining the C permit. So far, I have been taxed at the source (B permit). However, recently, I got C and I was asked to write my revenue for the whole year and my current fortune. As I wrote my yearly salary (BRUT) and my current bank account status (not different from before), I got to pay much higher amounts for the tax. When I add up all expenses for AHV, unemployment, pension and tax, it ends up being around 50% of my monthly salary for Vaud. I find that too much and a huge difference compared to when I was taxed at the source. Is that possible or am I doing something wrong?
Cheers!
Thanks.
Probably yes. It can happen that you pay more as with a B you pay an average when taxed at source (most of the time). But you also can deduct more with a C permit.
Also, you need to tell them what your net payment is, not gross.
There are probably expenses that you can claim against tax that you are not doing.
You should get a bookkeeper to help you fill out a tax return, which should not cost more than CHF 100.
If you have to pay 50%, it looks like your good fortune is coming to an end.
Social insurance contributions remains the same. No change in that. All what changes is the tax part, and indeed Vaud has quite a lopsided tax scales, which favors those on tax at source.
120k /y, single, no kids, Lausanne
Tax at source : 20k
Regular tax : ~24k (depending on actual deductions)
100k / y, single, no kids, Lausanne
Tax at source : 14.7k
Regular tax : ~18k (depending on actual deductions)
I think this was the issue. I couldn't find anywhere the information. Thank you. I will change the amounts on the e-ACO portal.
You should have a wage certificate each year. That tells you your salary information Gross and net. You shouldnt be calculating it as far as I know. You use your certificate which is anyway a key document to submit with your return.
The question was about you annual net income. If you're employed, working at the same company for years, or at least 2 years, just take the value from your last tax statement. The question gets odd once your income scheme has significant variation. What you need to understand is that it's for a provisional tax calculation. You're going to pay corresponding amount but at the end of the year you file a tax return where the outcome goes either way:
1. you overpaid tax, you got a tax return with interest
2. you underpaid tax, you have to pay the difference plus interest
The catch is the interest level, in ZH it's 1% for p.1, but 4.5% for p.2
Technically, you don't to have to pay anything till filing the tax return and settling the final bill paying a bit more due to interest
That does not sound correct, currently in ZH the interest accrued on the taxes before the final tax bill is finalised is 0.25% in both ways (for overpaid / underpaid). The 4.5% you are referring to is charged only after you fail to pay the final tax bill within 30 days, so these are actual penalty on the debt you owe the tax office.
See https://www.stadt-zuerich.ch/fd/de/i…-rechnung.html
This is something that confuses me.
I live in Bern and I just switched to Permit C, so I feel very much in the dark.
As far as I understood I will receive 3 bills to pay, being the installments to give the government some provisory money for my taxes. But my bill has a deadline next week, and it says there is an interest rate of 3% if I don't pay it on time.
I tried to ask the local tax office about this, but they didn't seem to understand my question: Is this 3% on top of whatever is the final calculation of how much I should pay on my taxes, no matter when I pay it - meaning, 1 day after the deadline of the first installment, or on the 31st of December, or after my 2023 taxes are calculated, at some point in 2024?-, or each of the installments (3 of them) will accrue an extra +3% interest on my final taxes - meaning if I fail to pay all 3 in time, even if I settle to final amount as soon as my taxes for 2023 are calculates, I will pay a taxes + 9%.
Could someone help me understand that?
Thank you all in advance!!
Interest rates are per year.
It is 3%/year, pro rated, of the amount you owe.
What is not clear about this?
Tom
Im sorry if my question sounds dumb, but when I moved to Switzerland I made many mistakes by assuming things here are like in other countries, and ended up having to pay the price for my assumptions...
So, if I don't pay any of the 3 installments, but pay the whole taxes I owe, plus the interest, before 12 full months of the deadline of my first installment, the total I will end up having to pay is my taxes plus 3%? Did I understand it right?
Thank both of you for the answers!!!
It depends. In some canton the payment deadline is quasi fix and you really should pay. Otherwise you may get a reminder etc. Specially the 3% indicate that you should pay it. Looking ae the relevant page from canton Bern: Yes, you must pay or they will start the Betreibung/Poursuit.
https://www.sv.fin.be.ch/de/start/th…en/zinsen.html
In other cantons, such as Zurich or Ticino, the payments are just suggestions. But thre the interest is also much lower.
Thank you for your reply, and for the link.
The part that you mentioned is this one, right?
"Ein Zahlungsverzug hat einen Verzugszins zur Folge. Wird die geschuldete Steuer trotz Mahnung nicht bezahlt, folgt eine Betreibung. Die Zinsberechnung erfolgt mit 360 Tagen."
Doesn't that mean they will start a Betreibung against you if you take over 360 days to pay after the deadline (which is like next week)?
Also, I am unsure if it is 3% total, or each installment (there are 3 of them) accrues 3% interest, reaching a total of 9% interest over the total taxes owed, in case you don't make any of those advanced payments, and just settles everything a bit less than a year later.
Each instalment is independent. If you have to pay X amount by day D, you will have to pay an interest of X · 3 / 36000 per day that you are late in the payment.
That's exactly what I wanted to know!
You know this for sure, right?
Also... does that mean I won't get a Betreibung if I pay before a full year has passed?
No, if you ignore the Mahnung you will get a Betreibung. Forget about the 360 days, it just means that to calculate the interest you divide over 360 although a year has 365 days. Pay asap.
Thank you for your answer!
For now I only got the bill, not a Mahnung. So, it should be safe. And if the 3% are calculated based on a 1/360 basis, then it seems fair, no matter if I pay 1 day late, or 3 months late.
I think this clarifies all I was confused about. Thank you all one more time!!
As others mentioned in some cantons the true tax liability of cantonal and communal taxes is created only when the final tax bill is delivered (i.e. when it is official how much exactly you owe in taxes). In other cantons (and federal taxes for everyone) create a tax liability when the pre-payment request arrives. It seems that your canton is in the latter bucket.
For what it's worth I think it's not a good idea to wait for the Mahnung (if that's what you mean). If you have reasons not to pay right now maybe it's worth getting directly in contact with the tax office to clarify your expected timeline and see what they think