Taxes: expert opinion: Switzerland has 27 different tax laws. Swiss News attempts at finding answers to some frequently asked questions.
Most of us don't seem to have any or most answers to our queries on taxation in Switzerland Swiss news attempts to explain the system by talking to experts in this field (also we 'Taxes Explained', page 14)
Swiss News contacts Ingo Heymanns of Ernst & Young regarding the formalities and regulations that need to be kept in mind when you relocate, are unemployed, etc. He also tells us what lies ahead in 2004.
Swiss News: Since tax laws vary in each canton, what happens when you shift residence to a different canton during the tax year?
Ingo Hoymanns: Due to the harmonised Swiss tax law, an individual is only taxed in one canton. Hence, if you move in the middle of the year to a different canton, the tax return will need to be filed where you reside at the end of the year.
Depending on the canton you intend to move to, you should take into consideration if it is better, tax wise, to move before the end of the year (i.e. when moving to a canton with a lower tax burden) or wait until the beginning of the next year (i.e. when moving to a canton with a higher tax burden).
However, there is an exception to this rule for foreign nationals who do not hold a C-permit and who are not married to a Swiss national or C-permit holder. In this case, a tax return (if required at all) has to be filed in the canton where the foreign national resides at the end of the year, but the taxes are allocated between the cantons involved and some cantons (such as Basel) can even request a midyear tax return.
What happens when a taxpayer moves residence within the same canton?
The relevant date is stipulated in the respective cantonal tax law. For example, in some cantons such as Zurich, taxation is based on municipality i.e. where the individual lives on January 1; in other cantons (e.g. Aargau) December 31 is the relevant date. Therefore, planning is important as housing costs can be higher in municipalities with a lower tax burden.
Do all foreign nationals have to file tax returns? What are the consequences of not doing so?
Tax authorities assess an individuals tax liability based on their submitted tax returns and so require detailed information about an individual's income and wealth.
You could be mislead into thinking that due to the tax-at-source system (for most foreign nationals) and the tact that Swiss investment income is subject to 35 per cent withholding tax, you do not need to the a Swiss tax return. However, that's not true. All residents in Switzerland...
Pour continuer la lecture
SOLLICITEZ VOTRE ESSAICOPYRIGHT GALE, Cengage Learning. All rights reserved.
