Meeting your tax deadlines and minimising your obligations

When you live in Switzerland, understanding the country’s tax deadlines and obligations is crucial to avoid unnecessary fines or overpaying your taxes.

The Swiss tax system is not the most straightforward one, especially if you haven't lived here for very long, as there are so many factors that can have an impact on your tax obligations. These include things like your canton of residence, international income sources and the applicability of tax treaties.

International tax specialists Wernli Steuerberatung explain what you need to know about submitting a tax return in Switzerland.

The Swiss tax deadline of March 31

You will have to submit a tax return in Switzerland if:

• your salary exceeds 120.000 Swiss francs; or
• you hold a C- or "settlement" residence permit, or are a Swiss citizen; or
• you receive additional income (such as from rent, dividends or similar sources) above 2.000-3.000 Swiss francs. The specific amount will depend on the canton you reside in.

The Swiss tax authorities are strict if you miss the March 31 deadline for submitting your tax return. It's also important to note that a few cantons set their tax deadlines earlier than the end of March.

Talk to a tax specialist today

Failure to meet the deadline can bring administrative challenges or penalties. However, in certain circumstances, it can be possible to arrange an extension, but this must be done before the original March deadline.

Keeping this deadline in mind is particularly important for high-earning individuals, who may need to understand and deal with more complex tax regulations in order to remain compliant while minimising their tax liabilities.

Optional tax returns

You can also opt to submit a tax return, even if you are not required to. Submitting a voluntary tax return can be worthwhile if:

• you’ve made significant contributions to your private Swiss pension (Säule 3a); or
• if your Swiss residence is considered a second home (allowing for a deduction on rent); or
• if you have high commuting expenses or costly further education.

However, a voluntary tax return is only possible if at least 90 percent of your worldwide income is subject to Swiss taxation.

Key considerations for expats in Switzerland

Every country manages their tax affairs differently, so it is likely that Switzerland’s tax system will differ significantly from those that you are accustomed to.

Switzerland has many international tax treaties, so depending on your nationality, you may be eligible for certain exemptions or deductions to reduce your overall taxable income.

The Swiss tax system also allows for different cantonal and local taxes, which means the taxes that you need to pay will vary depending on where you live.

With so many variables, it’s recommended to work with an expert who specialises in international tax law, such as Wernli Steuerberatung, to make sure you are paying the right taxes. Wernli Steuerberatung can help you understand your obligations and get your annual tax return submitted accurately and on time.

How Wernli Steuerberatung can assist you

As a tax advisor with expertise in both Swiss and German tax law, Wernli Steuerberatung specialises in helping internationals in Switzerland understand and comply with the Swiss tax system. They provide a range of services to ensure you both follow local tax laws while optimising your tax situation, including:

• Consultations on tax obligations: They will help you understand your tax obligations, ensuring you don’t miss out on any exemptions or benefits from international tax treaties.
• Tax filing: They manage the entire process of preparing and filing your tax return, ensuring everything is done correctly and on time.
• Tax optimisation: Their goal is to reduce your taxable income and help you save money by identifying eligible deductions and exemptions.
• Support for cross-border tax issues: If you have income or assets in other countries, they offer guidance on how to manage cross-border tax issues effectively.

Act before March 31

The March 31 deadline will be here before you know it - don’t wait until the last minute to submit your tax return. By working with Wernli Steuerberatung, you can avoid the risk of penalties and ensure that your tax return is filed correctly.