Of course, that’s option 3.
Or option 4: pay taxes late and keep the money invested because interest on late payment could be lower than expected returns. Check on your canton’s website.
Actually, this thread could be merged with either of these two:
Final tax bill timing - Taxes - Mustachian Post Community
Timing tax payments - Taxes - Mustachian Post Community
0.3% until Final Bill for Vaud.
If you need to take money out in 1-2 years then I suggest
1- Short term bonds with maturity date before the time you need the money
2- Money market funds
3- Bank fixed deposits
You cannot really invest in stocks because of volatility.
Then it doesn’t seem worth it. There are ‘safe’ investments that yield more than that.
What percentage of your assets is this? If you can cover even if your investment drops, then why not allocate it to your portfolio? It behaves a bit like free leverage for a fixed amount and a fixed term (you can’t deleverage).
If this would lead to undesirably high leverage, then one of the safe options named in this thread would be better.
Just a quick note - as far as I know the date is 15.03 and to be able to send declaration without consequences until 30.06, you have to fill simple and automatically processed online form. Not sure though what happens if it’s not done and you send the declaration later than 15.03.
Hi folks,
I’m a C permit holder and residing in Kanton Schwyz.
Due to my permit, I don’t have tax deducted at source and need to pay it separately either during the tax year or when the final tax bill comes.
Speaking with the local steueramt, they said that the prepaid amount “skonto” gets an interest rate of 0.75% and the late payment gets a penalty of 3.5%.
They further mentioned that the late payment is only on the unpaid amount (i.e., tax owed - tax paid) adding that the final bill usually comes around October with 1 month to pay and the penalty kicks off from the start of the next year. So, the taxes owed for 2023 will start accuring penalty from Jan 1, 2025. This is for the Kantonal and Gemeindesteur and the Bundessteuer (federal) should have a similar timeline but maybe different rates for prepayment and penalty.
Few questions about this:
Thanks!
It is the last of a few requests I see posted on this forum but also at the same time on r/SwissPersonalFinance.
While I understand your motivation for posting on multiple platforms, please bear in mind that people take of their personal time to answer you. An answer you may have already got elsewhere by the time it is posted.
Not against you personally, but if I may suggest, take your chance on the platform of your choice first and if it does not lead to the result or answer you were looking for, try then elsewhere.
That is probably one of the more common ways people do it.
But how are people here using their (potential) 13. monthly salary?
I currently calculate that in (use all of 13. monthly salary for provisional tax at the end of the year), so I put less aside each month and am able to invest more during the year.
The risk of not getting the 13. salary I don’t really see, as even if I would lose my job, I would still be eligible to the part of the 13. salary for those months I worked (and taxes would go down as well of course).
Yeah, thats the hardcore method. I am not comfortable enough with it risk wise.
Haven’t found any mention of the 13. monthly salary in this thread but it seems rather obvious to me that many will use it for timing tax payments…?
I use my 13th salary and pay in my pillar 3a maximum amount at the beginnig of the year. But not because I’ve given it much thought, but because it’s then simply done. The provisional tax invoice doesn’t arrive until a month later. But an interesting thought about the 13th month’s pay.
I also use it to max out 3rd pillar, but for the ongoing year.
As I receive the 13th in November, i prefer not to leave the money lying around for more than a month.
As far as the provisional tax is concerned, I start paying in July and finish 12 months later for a tiny amount of compensatory interest (Ausgleichszins).
I keep about (max) 10% of my NW in cash (part for EF, part because my wife is still re-establishing her business, part because it just feels right at the moment / in line with my risk tolerance),
and use that pool to pay for taxes, then replenish with next months’ income.
If I understand this correctly, you don’t have to list it, because the debt occurs in the year past, not in the year you get the tax assessment:
This means if you DON’T pay the tax in advance, you should deduct the debt from wealth in the tax declaration!
These are two different scenarios. The K-Geld article is about federal taxes for tax year Y, which you can declare as debt in the tax declaration for year Y even though you get the provisional bill only in year Y+1.
My comment was about the VD tax scenario described by @jmp and @Ed_Waadt where it’s possible to prepay taxes for tax year Y already at the end of year Y-1. I don’t think such a prepayment is even possible in e.g. AG and ZH.
Anders sieht es bei den Kantons- und Gemeindesteuern aus. Dort erhalten Sie für das laufende Steuerjahr eine provisorische Steuerrechnung und zahlen diese im laufenden Jahr. Daraus ergibt sich Ende Jahr keine Schuld fürs Folgejahr – sofern Sie die Steuern bezahlt haben.
If you pay in Y-1, there is no debt to deduct.
Right.
So the reverse is true: if you pay in Y-1, you don’t have to add this amount to Wertschriftenverzeichnis, and effectively don’t pay wealth tax on it.
Because you already spent it to pay for a debt that arose in the past year. It’s not a pre-payment that lays in the tax office account until the tax assessment is done!
BTW, in BS it’s like this, you get QR codes to pay in Y-1 for the year Y-1, which will get a definite tax assessment in Y, which you have to pay by May 31 of Y. The point being that the debt arises in Y-1, not in Y.
Meh, it doesn’t work:
(in the video)
In BS, you can only deduct debts from wealth that are owed and DUE.
C. Die Vermögenssteuer
- Schuldenabzug
§ 47
Schulden (einschliesslich der fälligen Steuerschulden) werden voll abgezogen.
The debt becomes due only May 31st of Y.
So, no luck in BS. Costs me literally dozens of Francs. 
Don’t forget the 1% annualised tax-free risk-free interest you get for the amount you pre-paid for Year Y, for the time/duration from the payment date until end May of year Y+1 ! 
What’s your take on the following, so I usually pre-pay in November of year Y, for year Y.
Should this amount then, which is like a credit of mine at the tax authorities, be listed in the Wertschriftenverzeichnis like an amount I still own, similar to money in a bank account?
I’ve never declared that amount, because I thought the debt for year Y is due at end of year Y, so not part of my wealth on 31.12.Y., but seems that’s wrong.
My guess is that the account should be listed. And I will do it like this in the next declaration, with a comment that they should clarify if this is wrong.
My reasoning is that paying on 30.12.Y-1 vs. 02.01.Y should be roughly equivalent. Since you can’t deduct the debt when paying late, you shouldn’t be able to deduct the account balance when paying early.
For the most part, this isn’t a prepayment, as I see it. It’s paying the taxes of the current year. Such normal provisional tax payments shouldn’t be listed in the Wertschriftenverzeichnis, as I understand it (at least assuming you didn’t overpay).