As the year draws to a close, we felt there was a need for an overview of the points of interest concerning the 2021 taxation and the changes announced for the coming year. You will also find listed below several useful links to go into more detail.
Since January 2021, revision of the Act on withholding tax
As a reminder, Switzerland has adopted the Federal Act on the Revision of the Withholding Tax, which entered into force on 1 January 2021.
Concerning taxpayers
Requests for rectification of the withholding tax are only possible for changes in circumstances not taken into account during the year or changes in rates and scales (deduction of adult children among others). The mandatory deadline is set at 31.03.N+1.
The notable changes for Swiss residents are:
- Taxation at source for B permits even if put on the ordinary tax roll before 2021;
- For salaries over CHF 120,000: automatic subsequent ordinary taxation;
- For fortunes and/or other income, subsequent ordinary taxation with a duty to report;
- The Subsequent Ordinary Taxation (TOU) is possible and necessary for all requests for additional deductions (3A, OPA redemption, pension, etc.);
- The transition to TOU will be maintained for the following years.
For non-residents, deduction requests are possible on request each year before 31.03.N+1, but only on the basis of the Subsequent Ordinary Taxation (Quasi resident) and subject to conditions (90% taxable in Switzerland).
Find out more on the subject here:
- • Publication of the Canton of Geneva ”L’impôt à la source 2021”.
- Consult our news “Impôt à la source: Les changements en 2021”.
Cross-border workers and teleworking
The agreement of 13 May 2020 for the teleworking of cross-border workers, more specifically concerning taxes and social contributions, has been extended until 31 December 2021. At this stage, there is no information available on a possible extension.
For the period concerning the health crisis, teleworked days remain subject to taxes and social contributions in Geneva. If no new agreement is made after this period, the agreement in place before the COVID period shall take effect:
- Taxation of Geneva cross-border workers from the first day teleworked in France;
- Taxation of Geneva cross-border workers from the first day teleworked in France;
Find out more here:
- Publication of the Canton of Geneva “Imposition du télétravail des frontaliers“.
- Discover the news of our partner CJE, Avocats Conseillers d’Entreprises “Télétravail et collaborateurs frontaliers: enjeux et limites”.
From January 2022, modification of the taxation of the private part on the company vehicle
As of 1 January 2022, the tax on the private use part of the company car will amount to 0.9% per month of the purchase price of the vehicle, which represents 10.8% per year, in order to integrate the use of the vehicle for home-workplace journeys.
With this new regulation, the employee’s travel expenses between home and the place of work will no longer need to be calculated, as the deduction of these expenses will be excluded. It will also no longer be necessary for the employer to declare the part of external service on the employee’s salary certificate.
Find out more on the subject here:
- Publication of the Canton of Geneva “Changement de pratique concernant l’imposition de la part privée de l’utilisation d’une voiture de fonction ”.
- Our news and its useful links “Taxation of private use of company cars”.