{"id":5671,"date":"2023-04-12T12:35:20","date_gmt":"2023-04-12T11:35:20","guid":{"rendered":"https:\/\/ajooda.ch\/en\/?p=5671"},"modified":"2024-03-04T16:45:25","modified_gmt":"2024-03-04T15:45:25","slug":"withholding-tax-vs-tax-return-in-switzerland","status":"publish","type":"post","link":"https:\/\/ajooda.ch\/en\/withholding-tax-vs-tax-return-in-switzerland\/","title":{"rendered":"How much tax refund can I get with a subsequent ordinary assessment if I am taxed at source?"},"content":{"rendered":"\n
Since 01.01.2021, it is possible for the first time for all foreigners without a C-Permit who are resident in Switzerland, to apply for a subsequent ordinary assessment (German: nachtr\u00e4gliche ordentliche Veranlagung or short NOV).<\/p>\n\n\n\n
But is it really beneficial to you to do the tax return or stay taxed at source (withholding tax)?<\/p>\n\n\n\n
As a person liable to withholding tax, its a legitimate question whether an ordinary assessment might offer more savings potential or get a tax refund respectively.<\/p>\n\n\n\n
Apart from exceptions, there are 3 forms of subsequent ordinary assessment:<\/p>\n\n\n\n
The last one is tricky:<\/strong> You have to apply for subsequent ordinary assessment on the basis of certain conditions, but you often don’t even know that you have to. In such cases, it can happen that you receive a tax return for a year which dates 2-3 years back.<\/p>\n\n\n\n If the person subject to withholding tax receives an annual gross salary of over CHF 120’000, they are automatically subject to regular assessment and must complete the tax return, despite the fact that they do not hold a Swiss passport or a C permit.<\/p>\n\n\n\n In the case of married couples, compulsory assessment applies as soon as one of them<\/strong> exceeds the entry threshold of CHF 120’000 gross, the income is not added together for the entry threshold.<\/p>\n\n\n\n In 80-90% of cases, it is worth applying for voluntary NOV. Especially those who can claim high deductions such as a long commute to work, further education costs, pillar 3a, etc., will in most cases save several thousand CHF in taxes through the tax return or get get a tax refund respectively. Warning:<\/strong> This depends on your individual situation, such as canton of residence, income and deductions.<\/p>\n\n\n\n Calculate this very carefully in advance, as you will have to complete your tax return for as long as you live in Switzerland once you have applied for NOV.<\/strong><\/p>\n\n\n\n Our tax experts can take care of the often time-consuming but worthwhile calculation for you, get in touch with us.<\/p>\n\n\n\n A optional application must be submitted to the tax office only once in the following year by March 31 the latest<\/strong>. In other words, if you want to complete the tax return<\/a> for the 2023 tax period, submit the application for NOV by 31.03.2024 (this deadline cannot be extended!)<\/strong><\/p>\n\n\n\n This application only needs to be submitted once; you will always receive the tax return automatically in subsequent years.<\/p>\n\n\n\n Did you know that you have to apply for NOV if you receive alimony, no matter how much you earn?<\/strong><\/p>\n\n\n\n Many people don’t know this and so it can happen that you have to fill in a tax return for a year that was several years ago as soon as the tax office gets notice of it.<\/p>\n\n\n\n If you earn income that is not subject to withholding tax (the list is not exhaustive)<\/em>:<\/p>\n\n\n\n or if you have higher worldwide wealth.<\/p>\n\n\n\n In contrast to the above-mentioned threshold of CHF 120’000, which is regulated in the Withholding Tax Ordinance (Quellensteuerverordnung), the entry thresholds for income not subject to withholding tax and worldwide assets vary from canton to canton.<\/p>\n\n\n\n You can find a short list of the entry thresholds from some cantons here:<\/p>\n\n\n\nAutomatic subsequent ordinary assessment<\/h2>\n\n\n\n
Voluntary subsequent ordinary assessment<\/h2>\n\n\n\n
Mandatory subsequent ordinary assessment (without CHF 120,000 gross income)<\/h2>\n\n\n\n
When do I have to apply for a retrospective ordinary assessment even if I earn less than CHF 120’000 gross?<\/h3>\n\n\n\n
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