I'm currently changing the cantons of my domicile from Vaud to Schwyz. A few quick facts concerning my situation:
- I'm a foreigner under permit B
- I'm currently taxed at source
I've contacted the "tax at source" department in canton of Vaud regarding the refund, but didn't receive any meaningful response besides the lady acting in a very aggressive fashion and yelling at me.
I'm looking for information regarding the process of receiving the difference in already paid instalments of withholding tax. Should I fill in some kind of a form or is it done through the annual tax declaration in canton of Schwyz somehow? Did the research but didn't find any advice.
Thank you in advance for all the answers, as I understand this is not a simple case.
It is not clear if you are submitting your tax declaration normally or not. If you plan to submit your tax declaration for next year: you will do it in the new canton, you will calculate your tax liability and all taxes at source withheld this year (in the old and new canton) will be used to pay them, if you paid too much - you'll get a refund.
If you don't do the taxes - then you can't really get a "refund". If you want to use the fact that the new canton has lower tax rates - you can proactively submit a tax return next year, even if you don't have to
Thanks for the answer, it sheds light on my case.
I do send tax declarations each year. So to my understanding, based on what you wrote:
1. I will fill in the tax declaration next year providing my total withholding tax paid (as usual) from both cantons
2. since Schwyz has lower taxes than Vaud - there will be tax overpayment due to spending certain amount of year in Vaud
3. the administration returns the overpayment with the annual tax return
Actually, it's not complicated at all...
The cantons work it out between each other - it's not something you have to do.
You will be taxed overall based on your place of residence on the final day of the calendar year (31 December) I can understand why the tax lady 'yelled at you' - you are completely wasting her time.... you certainly will not get any refund from them.
Oh, did you need/get permission to move Cantons ? If you are non-EU then you may need permission.... that means you have to apply to the new Canton for permission to move there, then once that is granted, you register there and de-register from the old canton.
Your employer will need to apply the new tax scales for tax-at-source (Quellensteuer)when you move - but you tell them, and that is based on your actual registration date in the new canton - so you don't have to do anything for that until you have actually moved - overall, it should be a very minimal change if your income is under 120K for the year, and if it's over 120K you would do a tax return anyway and then it will be done according to the rules.
As others have said, if you think it is going to be a significant difference, then of course you can take the step of putting in a tax return.
Correct. And I think you don't need to provide witholding tax in your tax declaration, you simply compute your tax liability - the tax office will figure out if you owe or are owed money given what you have already paid
Thanks for all the answers you guys provided. This makes the matter much more clear to me.
I'm not sure about that. While it's clear you have to talk only to the Schwyz canton after the move, it's not clear if Vaud has to return anything. You've been living in Vaud so you've paid whatever taxes are due. I moved last year and Vaud only returned the installment corresponding to the time after the move. I'm curious about the outcome of the final tax return, will see.
I’ve finally started sorting out my taxes, can anybody explain what’s this:
Translation:
From Steuerwissen für natürliche Personen | Kanton Zürich (zh.ch)
This is weird. I’ve inquired the VD tax office but they reassured me that all I have to do is to announce moving at the commune and I’ll be taxed for the whole year in the new canton.
Well, answering my own question, the Verrechnungssteuer is a different thing than Quellensteuer , but both translate to the same English term. Indeed I have already received back all the money I made according to the provisional tax pay slips from VD (the Verrechnungssteuer).