Alimonies are support contributions for the living expenses of children or divorced/separated spouses. The recipient must declare the contributions as taxable income. The person making the payments, on the other hand, can claim the benefits as a deduction.
Maintenance payments are support contributions for the maintenance of children or divorced/separated spouses. The recipient must declare the contributions as taxable income. The person making the payment, on the other hand, can claim the benefits as a deduction.
In the assessment ruling, the tax factors are definitively determined on the basis of the submitted tax return.
Based on the global standard of the automatic exchange of information (AEOI), information on all financial accounts of taxpayers is exchanged between states. The aim of the automatic exchange of information (AEOI) is to increase tax transparency and curb tax evasion.
Automobiles manufactured in Switzerland or imported from abroad are subject to automobile tax. The automobile tax amounts to 4% of the vehicle value and is levied by the Federal Customs Administration.
The calculation basis is the base or basis on which the tax is calculated. For example, taxable income is the basis for calculating the income tax due.
Causal charges, such as fees, preferential charges or substitute charges, are levied by the community for a specific service.
If the livelihood of a minor, a person who is unable to work or a person in education is mainly financed by the parents, the parents are entitled to a child deduction.
Church tax is owed by the members of a church congregation for the financing of the church.
If there is a (nominal) wage increase due to inflation, the tax burden increases despite the taxpayer's ability to pay remaining unchanged. Of course, this is only the case if income tax rates are not adjusted for inflation and the taxpayer moves up to the higher tax rate bracket for this reason.
Corporate entities are public limited coporations (PLC), limited liability companies (LLC) and limited partnerships.
Cryptocurrencies are digital currencies and must be declared as assets in the securities register from a tax perspective. Capital gains from cryptocurrencies are generally exempt from income tax. An exception, however, is the inflow from the mining of cryptocurrencies and the remuneration for services rendered in the case of self-employment in cryptocurrencies - in this case, this inflow is subject to income tax.
Debt interest is interest paid in the tax period on private debts (borrowed assets). This debt interest can be deducted in the tax return if it can be substantiated.
Direct federal tax is levied annually by the federal government on the income of private individuals and profits of companies. In contrast to cantonal taxes, the same tax rates apply throughout the country.
In the case of direct tax, the tax subject (the person who has to pay the tax) is the same as the taxpayer (the actual payer of the tax). Examples of direct taxes are income tax, wealth tax, profit tax, capital tax, property gains tax, gift tax, inheritance tax and withholding tax.
If no tax return or incomplete documents are submitted despite a reminder, the income and assets are estimated by the tax authority with a discretionary assessment. The tax amount may be higher due to the presumed estimate.
Voluntary contributions to institutions for charitable purposes.
The double-earner deduction, also known as the two-earner deduction, can be claimed if both spouses or registered partners work.
The prohibition of double taxation is intended to prevent the levying of tax by two different states or cantons on the same income or assets.
Non-employed foreign nationals who are resident in Switzerland for tax purposes may be taxed according to expenditure. In the case of taxation according to expenditure, the tax is not calculated on the basis of income and assets, but on the basis of the annual effective living expenditure.
The federal tax is levied by the Confederation as the tax sovereignty of Switzerland on the income of natural persons and the profit of legal entities.
Fiscal taxes are levied for the public purpose, i.e. without direct consideration from the state. Fiscal taxes include causal charges and taxes.
General deductions are not related to the profit costs for the income. Examples of general deductions are medical expenses, insurance contributions or contributions to the 3rd pillar.
Gift tax is owed by the recipient of the benefit. An exception can be gifts to spouses, registered partners or descendants, these are usually exempt from tax.
As a rule, immovable assets include real estate.
All income from recurring or one-off benefits is considered income. Examples of types of income are salary payments, income from immovable or movable property, benefits from insurance, capital benefits, alimony payments, capital gains, maintenance payments or imputed rental value.
Income tax must be paid by the individual on the taxable income.
An individual is a private person.
The heirs or legatees have to pay inheritance tax on the inherited property.
The health insurance premiums, accident insurance premiums or life and pension insurance premiums paid are deductible in the tax return.
A legal person is an enterprise, such as coporations, cooperatives, associations or foundations.
If a person has business operations, permanent establishments or real estate in a canton in which he or she is not resident or domiciled for tax purposes, he or she has limited tax liability in that canton. Individuals who are not resident or domiciled in Switzerland for tax purposes have limited tax liability if they earn income in Switzerland. In this case, the tax is generally collected at source. An example of this taxation are artists from abroad.
A lottery tax is levied on winnings from lotteries, games of skill or online casinos.
The main tax domicile of a natural person is normally the place of residence, i.e. the centre of life. In the case of legal entities, the registered office is considered the main tax domicile.
Movable assets include all assets such as securities, bank deposits, life insurance policies or vehicles. Real estate, with the exception of real estate, does not constitute movable property.
The municipal tax is the annual tax due to the municipality of residence. To determine the municipal tax, the simple state tax is multiplied by the municipal tax rate.
The assets minus the debts.
With the non-punishable voluntary disclosure, the taxpayer has the opportunity to declare previously undeclared income or assets to the tax authorities without incurring penalties for tax evasion.
If you do not agree with the assessment order or the assessment decision, you can lodge an objection in writing within 30 days.
The imputed rental value is an estimate of the rental or leasing income that would be generated if the property were rented to a third party. The imputed rental value must be taxed by the owner as additional income in the case of owner-occupied residential property. The reason for this is the advantage from the omitted rent.
Partnerships are an association of at least two natural persons. Examples of partnerships are general partnerships, limited partnerships and simple partnerships.
The poll tax or personal tax must be paid from the age of majority, regardless of income or assets.
All costs related to the exercise of a profession, such as travel costs, subsistence costs, professional clothing or further training costs. Professional expenses can be deducted from income in the tax return. However, they are usually deductible by the tax authorities as lump-sum contributions and only up to a maximum amount.
The profit tax must be paid by the companies, such as public limited corporations, limited liability companies, associations or foundations for the profit achieved in the business year.
If the property is sold, the seller must pay tax on the resulting net profit (difference between the sales price and the investment costs).
Property taxes are levied based on the ownership of the property. Dog tax is an example of a property tax.
In addition to the main tax domicile, the secondary tax domicile may also be taxable for individual parts of the income or assets. A secondary tax domicile may arise on the basis of a business operation, permanent establishment or real estate at that location.
A secondary tax liability may arise on the basis of a business, permanent establishment or immovable property at that location.
Typical examples of social deductions are the child deduction or the support deduction. The social deductions were intended to relieve taxpayers with special family situations.
In a sole proprietorship, the business is run by an individual and no company such as a limited liability company or public limited coporation is founded for this purpose.
The personal tax or head tax must be paid from the age of majority, irrespective of income or assets.
A subsequent assessment may arise for persons liable to tax at source with an income of more than CHF 120,000 These persons must also complete a tax return despite being taxed at source.
A supplementary assessment may arise for persons liable to withholding tax with income or assets that are not taxed at source. Examples of income not taxed at source are pensions, income from self-employment, capital benefits, etc. In this case, a tax return must be completed despite taxation at source.
In the case of financial support for a person who is incapable of working and in need of support, a support deduction can be claimed.
The net income minus social deductions.
Due to an event during the tax year, such as death, moving in from abroad, moving out of the country or withdrawal from the withholding tax, a tax liability may arise during the year. Thus, the tax liability does not last from 1 January to 31 December as usual.
The tax object designates the object or the transaction on which the tax is levied. The income and assets of a natural person are tax objects.
Different ways to reduce taxes.
The period for which the taxes are due. In principle, the entire calendar year. Exception in the case of a tax return during the year due to departure abroad or death.
The disproportionate increase in the tax rate depending on taxable income. High incomes are disproportionately more burdened than lower incomes.
The tax rate is used to calculate the municipal taxes owed. The factor or percentage is determined annually by the municipality. For the calculation of the municipal tax due, the tax rate is multiplied by the simple state tax.
Disclosure or declaration of all income and assets to the tax authorities.
A tax return during the year must be completed in the event of death, a move from abroad, a move abroad or a withdrawal from withholding tax during the year. All income during this period must be declared on this tax return.
If a taxpayer is liable to tax in several countries, cantons or municipalities, both the total income and the total assets are divided between the main and the individual secondary tax domiciles in order to avoid double taxation.
Tax sovereignty, such as the federal government, the cantons or municipalities have the right to levy taxes.
Tax subjects are individuals and legal entities that owe taxes to the tax authority (Confederation, canton and municipality).
Third-party childcare costs are costs that you incur for the care of your child during your employment. (e.g. day nursery, after-school care centre or day school).
The two-earner deduction, also known as the dual-earner deduction, can be claimed if both spouses or registered partners work.
Persons with tax residence and economic affiliation are subject to unlimited tax liability at their place of residence.
Value added tax (VAT) is levied on consumption or services and is used by the federal government to cover expenditure. This tax is passed on to the end consumer, levied on businesses and paid to the state.
Certificate from the employer about the benefits paid out. The salary statement provides information on the salary and all salary components.
In the case of gainfully employed persons without residence in Switzerland or a permanent residence permit, the tax is deducted directly from the salary by the employer and delivered to the state. For this reason, these persons do not have to complete a tax return, unless a subsequent assessment or supplementary assessment for withholding tax is required.
The withholding tax of 35% is levied on the income from movable assets. The bank forwards the withholding tax directly to the FTA. However, this amount is refunded to the taxpayer if the asset declaration in the tax return is correct. The withholding tax is intended to curb tax evasion with this procedure.