Personal taxes for Foreigners in Switzerland are quite complicated and depend on how long the taxable person has resided in Switzerland for (whether they then have a “B”, “L” or “C” permit), which Canton they are working and residing in, or if they live in a neighbouring country and work in Switzerland every working day, or on most working days.
Some general and non exhaustive rules to follow are:
>>”B” or “L” permit holders (usually persons who have lived in Switzerland for less than 5 years) pay tax at source if they live in Switzerland. The employer deducts the amount from the monthly pay and pays it to the tax authority in the Canton of residence of the employee.
>>Persons who have a “C” permit, Swiss, or married to someone with a “C” permit or who is Swiss does not normally pay tax at source, but instead will fill out a yearly tax return and will pay tax directly to the tax authorities – no deduction is made on the salary slip.
>> “B” permit holders earning over CHF 120,000 (CHF 500,000 for Geneva), or who own their residence in Switzerland, will typically also be required to fill out a full tax return.
>> Cross-border workers will be taxed as according to where their employer is based in Switzerland. For instance, if the worker lives in neighbouring France and the employer is in Geneva (or Zürich) then the employer deducts the tax at source where the work is performed. If the employer is in the Vaud Canton then the worker will pay tax in France.
To determine the tax to pay the elements that are taken into consideration are the Swiss salary (including any bonuses), marital status and number of dependent children.