Timing tax payments

Third option: pay the taxes in advance? Not sure how much in interest Vaud charges on this kind of ‘unpaid/late’ taxes, but I’ve lived in places where it can be quite high.

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:

  1. Does the above information make sense or did something get lost in translation?
  2. Considering the prepayment gives “only” 0.75% and WillBe’s at 1.3%, do you folks pay the bill only when the final amount comes due or do you pay in over the year?
  3. Do you folks keep it in CHF or convert it to USD to use WillBe’s 4.7% / IBKR’s blended rates?

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.

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