Swiss Taxes

We believe the Majzel - Bennett household is a modern one.  Most responsibilities are shared equally.  However when it comes to paying our taxes Marcus has been handed the opportunity.

So there was some trepidation this morning that  whilst searching for a Networking Diagram, I came accross our [unpaid] tax bill for June 2011.  Shock and horror!


So how does the Taxation system work?:

• If you arrive in Switzerland and receive an L or B permit you will be taxed at source
  
• Here tax is deducted from your salary as it is earned (like in the UK Pay As You Earn PAYE for example)
  
• Unfortunately  when both you and your partner work (traditionally the wife does not work) then the salaries are added together
  
• In Switzerland ALL your salary is taxed at one rate
  
• So,  when your combined salaries are taxed cummulatively the rate can skyrocket
  
• Example,  our individual tax bands are say 30%,  but on our combined salary perhaps > 40%
  
• So at each year end reconsiliation we have had to remember to save an Audi TT S Black Edition in cash.  That's the extra tax we pay because we are married! And no, I am not kidding!

Time passes and we have a better class of Residence permit.  Now :

• No tax is deducted at source
  
• At the end of a year you tell the Canton your combined total earnings, & they work out the tax for the next year and you pay this monthly.
  
• Naturally this assumes you don't ever change your job / salary, else your tax situation gets very complicated!
  

The only benefit will therefore be at the end of year we don't land ourselves the mother of all tax bills.

Thanks Switzerland,  I think  :-!