Tax at source, changes for employees as of 01.01.2021
As of 2021, there are significant changes in Swiss taxes the tax at source.
This article aims to generally inform most of the changes for the employee and does not tend to replace the information coming from the tax authorities to which you must refer.
You can get more information from changes thanks to the 69-page AFC (Federal administration of contributions) Dense Circular #45
Competent tax authority:
The employer will be required to account for the tax at source with your canton of domicile and will no longer be able to do so with the tax domicile of the company.
Information to the employer:
To avoid any problems for you and your employer, it is especially important to inform him of any changes (relocation, family situation, other jobs, etc.).
Simplified reporting procedure (old procedure):
Until the fiscal period 2020, Taxpayers who want to claim higher business expenses than the lump sum included in the income tax or possible contributions 3a could fill in a simplified tax return until 31.03 of the following year to claim an effective calculation.
Countdown Correction Procedure:
This mandatory deadline at 31.03 remains in the new tax rules at source, but to request an effective calculation in the event of a calculation discrepancy with the tax withheld (circular ACI number 11.6). It will no longer be possible to claim business expenses in a simplified declaration. It will have to be done through subsequent taxation.
Subsequent taxation procedure:
If your situation at the source deviates from your real situation, you will have the choice, if you have your domicile in Switzerland or abroad with an income in Switzerland at more than 90%, always with the mandatory deadline of 31 March, to fill in an ordinary declaration (figures 11.1 and following in the AIT circular). Amounts withheld at source will be considered as advance payments.
Persons who had an income of more than 120,000 fr. annually or for whom any element could give the canton or commune a right to be taxed separately (taxable wealth, real estate, etc.) will continue to be required to file a tax return.
Also, if, as a result of a change in family status, you are again taxed at the source and therefore completed a declaration previously, you will have to continue to do so (figure 12.2 of the AIT circular).
For those who voluntarily request the subsequent taxation procedure, they will therefore have to do their calculations properly. In fact, it is no longer possible to give it up.
Transition from tax at source to ordinary taxation:
If you obtain a C permit or Swiss nationality (or your spouse obtains it and is resident in Switzerland), you will no longer be subject to the source but in an ordinary manner
This article aims to generally inform most of the changes for the employee and does not tend to replace the information coming from the tax authorities to which you must refer.
You can get more information from changes thanks to the 69-page AFC (Federal administration of contributions) Dense Circular #45
Competent tax authority:
The employer will be required to account for the tax at source with your canton of domicile and will no longer be able to do so with the tax domicile of the company.
Information to the employer:
To avoid any problems for you and your employer, it is especially important to inform him of any changes (relocation, family situation, other jobs, etc.).
Simplified reporting procedure (old procedure):
Until the fiscal period 2020, Taxpayers who want to claim higher business expenses than the lump sum included in the income tax or possible contributions 3a could fill in a simplified tax return until 31.03 of the following year to claim an effective calculation.
Countdown Correction Procedure:
This mandatory deadline at 31.03 remains in the new tax rules at source, but to request an effective calculation in the event of a calculation discrepancy with the tax withheld (circular ACI number 11.6). It will no longer be possible to claim business expenses in a simplified declaration. It will have to be done through subsequent taxation.
Subsequent taxation procedure:
If your situation at the source deviates from your real situation, you will have the choice, if you have your domicile in Switzerland or abroad with an income in Switzerland at more than 90%, always with the mandatory deadline of 31 March, to fill in an ordinary declaration (figures 11.1 and following in the AIT circular). Amounts withheld at source will be considered as advance payments.
Persons who had an income of more than 120,000 fr. annually or for whom any element could give the canton or commune a right to be taxed separately (taxable wealth, real estate, etc.) will continue to be required to file a tax return.
Also, if, as a result of a change in family status, you are again taxed at the source and therefore completed a declaration previously, you will have to continue to do so (figure 12.2 of the AIT circular).
For those who voluntarily request the subsequent taxation procedure, they will therefore have to do their calculations properly. In fact, it is no longer possible to give it up.
Transition from tax at source to ordinary taxation:
If you obtain a C permit or Swiss nationality (or your spouse obtains it and is resident in Switzerland), you will no longer be subject to the source but in an ordinary manner
The same applies if you are retired and no longer have income subject to tax at source in Switzerland or if you receive a full disability pension.
Taxation at source will cease the month following the change in circumstances.
Note that persons will have to complete a regular declaration for the entire period and that the amounts withheld at source will be considered as instalments (figure 12.1 of the AFC circular).
These changes therefore eliminate partial taxation when switching to licence C.
Applicable Schedules:
The scales have changed, particularly with regard to the removal of the scale for ancillary activities. Special calculations must be made by the employer. We will not go into detail in this article and refer you to the numbers 4 and following in the AFC circular.
Case of rigour:
In some cases, taxation at source based on legal provisions can be cumbersome. This is particularly the case when someone pays child support and cannot claim it in the schedules. In paragraph 4.9 of the AFC circular, it is specified that, on request, the tax authority may decide on the scale to be applied in order to guarantee, for example, the minimum subsistence level.
Taxation at source will cease the month following the change in circumstances.
Note that persons will have to complete a regular declaration for the entire period and that the amounts withheld at source will be considered as instalments (figure 12.1 of the AFC circular).
These changes therefore eliminate partial taxation when switching to licence C.
Applicable Schedules:
The scales have changed, particularly with regard to the removal of the scale for ancillary activities. Special calculations must be made by the employer. We will not go into detail in this article and refer you to the numbers 4 and following in the AFC circular.
Case of rigour:
In some cases, taxation at source based on legal provisions can be cumbersome. This is particularly the case when someone pays child support and cannot claim it in the schedules. In paragraph 4.9 of the AFC circular, it is specified that, on request, the tax authority may decide on the scale to be applied in order to guarantee, for example, the minimum subsistence level.