Timing tax payments

Taxes
65

How can the “provisory” bill come for the historical years?
It should have been coming during them (at least in ZH) - weird.

The 4.5% should apply to the final bill only, afaik.

66

I would contact them to know if it is possible to stagger them over the next

And yeah, kind of weird you get the bill for 2021 only now…

For knowing what kind of interest rates apply, it should be written on the bill itself.

67

Hi again all, I just saw this topic and moved my post here. I see there are already some answers to my question. Like, it seems I don’t need to cough up 100k or pay 4.5%, because that will only apply to the final bill right? So for now only 0.25%?

I don’t know, but I guess my Steueramt didn’t get their act together for a long time, and suddenly they woke up and sent me all 3 years at once?

Also, my bill for 2020, I sent the declaration in Feb 2021, and they sent me the final bill Aug 2022 (was 33’000). So 18 months to review my declaration. And then 1 year more to send me the provisional bills.

I mean, I don’t mind, the later I get the bill, the longer I hold onto the money. I guess my wealth tax is slightly elevated, but I can invest this money.

That is a good point. However, since you can have a margin account with IB, if you have a large enough stock position, you can stay 100% invested, and once the deadline comes to pay, you can just slightly leverage yourself, pay the bill, and then fill up the gap in subsequent 3-4 months with your salary. I don’t think being like under 10% leveraged is such a big risk, or?

68

Yes this is fine.

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69

I called my Steueramt. They said that they sent me 3 bills at once, because they only now got the info from Bewohnerkontrolle (or what’s it called) that I switched from permit B to C, so from Quellensteuer to… no Quellensteuer. People who pay Quellensteuer do not get a Provisorische Rechnung, because their employer already pays.

And the important thing:

  • the Ausgleichzins (0.25%) counts from 30 days after the date of the Provisorische Rechnung
  • the Verzugszins (4.50%) counts from 30 days after the date of the Finale Rechnung

So yeah, all good, on Sept 15 they will start charging only 0.25% annual interest on these 100k that I owe them.

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70

And 1% starting next year.

Btw the final assessment will be coming much faster now that you’re not at source (a few months for me).

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71

Source?

20char 20char

72
73

Thank you! Not cool. But ok at Willbe I still get higher return (1.55% atm)

74

Depends on your marginal tax rate tho.

75

Thanks, I did not know they will raise to 1% in Jan’24.

In 2022 I didn’t pay the tax in advance. I thought just for 0.25% I don’t want the hassle to pay them, and I would prefer pay the all taxes at once when the final tax result comes. But this 1% (4 times more), probably make sense to pay most of them in advance.

So for 2023 as usual I received from my gemeinde some pre-filled amounts bills: one for June, two for Sept, one for Dec, and one with no prefilled amount.
I believe they give all these different bills just to give you multiple options to pay them as you prefer.
So if I wish I could just fill the bill with empty amount with the amount I prefer before 31st Dec, and I would not have to pay any interest for the amount I would have paid. Is that correct?

76

I am not quellensteur since 2022, so I am still no very familiar with taxes in CH. But this 33k sounds to me like a lot :smiley: I hope I do not have to pay such amount for '22 or '23.
Probably this 33k chf tax is for around 200k chf salary, right?
If that is the case I would be happy if one day I would have to pay such amount of taxes xd

1 Like
77

Did the canton ZH people receive the (preemptive) payment bill for 2023?
Last year I got it quite earlier, nothing yet for this year.

If I haven’t gotten one, how do I order it?

78

Actually I didn’t receive it either.
You can ask for one online though: eGov Box (vrsg.ch)

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79

I always get it around May (Staats- und Gemeindesteuer).

80

I got it in February as usual. I’m in canton ZH but not in the city of Zurich.

81

I can’t seem to register there - it’s throwing an error that some input fields are wrong, but none are. :sweat_smile:

Edit: Found this (for ZH) - Einzahlungsscheine für natürliche Personen - Stadt Zürich

82

In Vaud, you have until June 30 to send your tax declaration. From my experience, the canton tells you what you owe them around the end of the year, and sometimes even the year after.

I’m in a situation where my monthly payments are much lower than what I owe in taxes, because a large portion of my compensation is in RSUs (stocks), which I typically sell part of to cover taxes. This means that I constantly have 30-70k sitting in my bank account waiting to be paid in taxes.

Any thoughts and recommendations on investing it? I would typically be able to invest it for 1-2 years.

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83

“safe” investment:

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84

You can basically do two things, or a combination of these two:

  1. “Safe” option: Look for a good savings account to park your money. Interest rates up to 2 % at the time of writing. Note that the return is taxable.
    Short guide to CHF fixed income options - Wiki - Mustachian Post Community
  2. “Riskier” option: Invest your money in ETFs and take out a margin loan to pay your tax bills. Then pay back the margin loan when money comes in. At the time of writing, the margin rate for IBKR is 3%. The current rate can be found here: Margin Rates and Financing | Interactive Brokers U.K. Limited. Please note that the interest cost can be deducted from your income, so the after-tax rate might be 20-30 % lower.
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