Hi All, My company is relocating me to Switzerland however, I'll become a local employee in our Swiss entity. Wondering if anyone can advise me on the TAX implications. Appartenly you need to pay the higher or either US or Swiss Tax on the Federal level and then a Canton tax (equivalent to State Tax) as the local side. Can someone share any insight if they were worst off by all these taxes? Any input will help! Thank you
United States - 1 Answers
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You really need you employer to sort this one out. To a certain extent, it can depend on Canton. Normally, when a foreign worker arrives in Switzerland with a valid work permit, they will be liable to 'tax at source' - in the German speaking part this is called 'Quellensteuer', and is deducted from your monthly income automatically.This includes the Cantonal tax and the Gemeindesteuer(Taxe de Commune) which is the tax levied by the local government where you are registered. Some Cantons also tax foreign workers in the same way as Swiss - this means there is no monthly deduction, just a tax form to fill in and a bill three times a year. If you have special deductions to make, you can normally ask for a form at your local tax authority, but in most cases tax deduction at source is fair. US citizens are apparently obliged to pay some sort of minimum tax in the US. You would have to ask the US authorities about this. This may be confusing at the moment, but it's really quite simple, and it's really the job of your employer to make things clear to you. Switzerland may be very small, but, like the USA, it's a federation and not all Cantons work the same way.
