Tax at source (Quellensteuer) with income over 120'000 - tax declaration

Taxes
1

Hi all,

I’m trying to understand the rules for the tax at source (Quellensteuer) and the need / eligibility to file a tax declaration. This would be my first year doing that.

My situation:

  • Since the beginning of 2021 income over CHF 120’000
  • Tax at source is still (also now in 2022) deducted from my gross salary
  • Married in June 2021
  • Both I and my wife have a B permit
  • Living in canton Zürich

Could you please help me answer the following questions?

  • Since my yearly gross income is over CHF 120’000, why am I still paying tax at source?
  • Given the income amount, I have to file the tax declaration, right?
  • In case I don’t have to file the tax declaration, should I? I’ve read some posts here that people often end up paying more, when they declare the taxes, compared to being taxed at source.
  • In case I have to file the tax declaration, am I supposed to get some documents for it from the canton automatically, or do I have to request it? If automatically, when should I get it? I haven’t received anything yet.
2

The reason for deducting taxes directly from the salary is to prevent people from skipping tax payments (and leaving the country). Taxes will remain to be deducted directly from the salary as long as you’re on the B permit, as far as I know.

Yes, you will have to file an ordinary tax declaration if your gross income in 2021 was over CHF 120’000. The money that was deducted from your salary will be credited against your final tax bill. You may have to pay on top or get a refund depending on whether your final tax bill will be higher or lower than what was withheld. Keep in mind that it will likely take at least a year until you get your final tax bill.

As far as I know, you should automatically get the tax forms. However, I’m not completely sure and don’t know how quickly that usually happens. It may take a while for your employer to report the salary and for the tax authorities to process it. Maybe someone else can provide more insight or you could ask the tax authorities in your town.

2 Likes
3

You can always request an ordinary taxation with the paper form.
However the tax department seems a bit under the water with the new tax declaration.
I phoned them in Geneva and they told me they are still sending the letter with the tax declaration number.
I should receive it next week.

4

Quellensteuer will always be deducted from your paycheck as long as you’re on B permit.

Yes, you have to declare tax just like any other citizens in CH.

5

Thank you all for your inputs. I’ve also emailed the Zürich Tax Office with my question and this is their reply:

Quellensteuerpflichtige Personen sind - unter Vorbehalt nachstehender Ausnahmen - nicht (zusätzlich) am ordentlichen Steuerregister geführt und müssen auch keine Steuererklärung ausfüllen.
Die Ausnahme bilden folgende Personengruppen:
1.) Übersteigen die der Quellensteuer unterworfenen Jahres-Bruttoeinkünfte CHF 120’000 (bei unterjähriger Steuerpflicht auf ein Jahr umgerechnet), wird eine nachträgliche Veranlagung im ordentlichen Verfahren
über das gesamte Einkommen und Vermögen durchgeführt.
2.) Sie verfügen über weitere nicht der Quellensteuer unterliegende Einkünfte über CHF 3’000 bzw. Vermögen über CHF 80’000/Einzelperson / CHF 160’000/Ehepaare/eingetragene Partnerschaften
Wir weisen darauf hin. dass Sie in diesem Fall verpflichtet sind einen Antrag auf nachträgliche ordentliche Veranlagung zu stellen.
3.) Sie möchten eine freiwillige nachträgliche ordentliche Veranlagung vornehmen um abzugsfähige Aufwendungen geltend zu machen, welche in den Quellensteuertarifen nicht oder nur pauschal eingerechnet sind.
Dies können beispielsweise folgende Abzüge sein: effektive Berufskosten (inkl. Wochenaufenthaltskosten), Einkäufe in die berufliche Vorsorge (Pensionskasse), Beiträge an die gebundene Selbstvorsorge (Säule 3a), selbstgetragene Aus- und Weiterbildungskosten bis maximal CHF 12’000/Jahr, Kosten für die Drittbetreuung von Kindern, Alimentenzahlungen. usw.
Unter folgendem Link kann der Antrag auf eine Nachträgliche Veranlagung gestellt werden.

I’m a bit confused (my knowledge of German is not the best) - the link they provided should be for any of the 3 cases above, right? Either I have annual gross income > CHF 120’000 OR I have additional income (besides the one taxed at source) of more CHF 3’000, or total assets of more than CHF 160’000 OR I voluntarily want to file a tax return (thinking that through the tax reductions I can get to a total tax that is lower than what was deducted through tax at source). But, when I go to the link, they mention as the prerequisites for the application only 2 of those 3 cases (those two that don’t apply to me, and they don’t mention the income > CHF 120’000 possibility):

Voraussetzungen für eine nachträgliche ordentliche Veranlagung:
– Sie verfügen über weitere nicht der Quellensteuer unterliegende Einkünfte über CHF 3’000 bzw. Vermögen über CHF 80’000 (bei gemeinsam steuerpflichtigen Personen CHF 160’000). Wir weisen darauf hin dass Sie in diesem Fall verpflichtet sind einen Antrag auf nachträgliche ordentliche Veranlagung zu stellen.
– Sie möchten eine freiwillige nachträgliche ordentliche Veranlagung vornehmen um abzugsfähige Aufwendungen geltend zu machen, welche in den Quellensteuertarifen nicht oder nur pauschal eingerechnet sind.

How do you understand this? Do I need to apply for the “Nachträgliche ordentliche Veranlagung”?

6

This means that they will do it automatically, as I understand it. It may take a while.

As you can also request a switch to ordinary assessment for no particular reason (3rd case), you could still file a request. Maybe you’ll get the tax declaration quicker, maybe not. However, you shouldn’t be need to request it.

7

I don’t know if it’s done automatically in every canton. For canton LU, I had to request it at the tax office, because they didn’t send me anything until end of Feb 2021. Might be different for other cantons though.