Tax return for expats

Winnings from casino games that are earned in Swiss casinos are still tax-free. Winnings arising from online participation in casino games, provided that these are permitted in Switzerland, and winnings arising from participation in large-scale games such as lotteries, sports betting and large-scale skill-based games (example: online Jass from Swisslos), are tax-free up to CHF 1 million. Winnings from permitted small-scale games, such as small-scale lotteries, raffles and sports betting, which are not automated, not online and not intercantonal, are fully tax-free. Winnings from lotteries and skill-based games which serve to promote sales are tax-free up to CHF 1,000. Winnings with a value of more than CHF 1,000, including non-cash prizes such as cars, are fully taxable. Winnings from foreign games or games not permitted in Switzerland are fully taxable.

Family benefits (children's and education allowances) constitute taxable income and must be declared in the tax return.

No. Taxpayers are assessed independently for the first time for the tax period in which they become of age. Up to then, underage children are assessed together with their parents. However, work-related earnings of minors are excluded. In principle, these are not taxed on the parents, but on the minor child. Since hardly any taxable income remains from an apprentice's salary - which is within the normal range - after all deductions, such income is generally not taxed. However, from the year in which your son comes of age, he must complete a tax return and declare his salary (no tax allowance). Of course, the corresponding deductions can be claimed analogously.

Yes. All income is taxable. However, professional expenses (flat rate of 20% of income or actual costs) may be deducted from income.

Scholarships do not have to be taxed, as long as the scholarships paid during the education together with other income do not cover more than the costs of education and the necessary living expenses.

Social welfare payments, helplessness allowances, supplementary benefits and compensation payments are not taxable, but they must still be declared in the tax return.

The Individual Premium Reduction need not be declared as income. However, the IPV must be deducted from the insurance premiums claimed.

The tenant has to tax the income arising from subletting as income if the income arising from subletting is higher than the rent agreed in the main tenancy.

No, if the house has not been habitable due to renovation, you must declare the imputed rental value only after moving in.

Properties encumbered with a usufruct are generally taxed by the usufructuary; that is, income (imputed rental value / rental income) less maintenance costs and mortgage interest. As long as the usufruct exists, the owner does not have to declare such a property subject to usufruct in his or her tax return.

You must pay tax on your income in Bern starting on 01.01.2020. In the event of a change of residence, the residence at the end of the tax period is decisive. The taxpayer becomes liable for tax at the place of moving in for the entire tax period.

Income from an undistributed inheritance is taxable from the day following the date of death by the individual heirs on a pro rata basis (according to their inheritance share) or must be declared in their tax returns.

A workroom deduction can only be granted if a substantial part of the professional work must regularly be done at home, because the employer does not provide a suitable workplace and the taxpayer has a special room in his or her private home which is used mainly for professional (and not private) purposes. Anyone who performs work at home only for personal convenience, although a workplace is available from the employer, cannot claim a deduction. If a deduction is claimed for a workroom, the relevant evidence must be enclosed with the tax return (confirmation from the employer). In the case of "smart working", where employees in the company have (only) flexible workplaces at their disposal, as a rule, no private workroom deduction can be claimed.

If a new job is sought while exercising gainful employment, the expenses incurred in connection with applications are not deemed to be occupational costs, and therefore cannot be deducted. The situation is different with unemployment.

Yes. The flat-rate deduction for professional expenses can be claimed. If higher expenses in connection with applications are proven, such expenses will be deducted instead of the flat-rate deduction.

Only those work clothes that are used exclusively for professional and work purposes, such as work coats, work aprons, protective clothing, rubber boots, etc., are eligible for deduction. The corresponding expenses are included in the flat rate for other professional expenses. However, clothes that have to be worn because of the professional position (suits, ties, haute couture fashion, etc.) are excluded.

Since the 2016 tax period, vocation-oriented training and further education and retraining are deductible up to a maximum amount of CHF 12,000. In principle, the distinction between deductible further education and non-deductible training has been dropped. The following conditions must be met for deductibility: a qualification at secondary level II (for example, the Matura examination or vocational training) must be present, or the applicant must have reached the age of 20 and must not have paid any training costs up to the first qualification at secondary level II.

No. Education costs of the children are living expenses and cannot be deducted. However, parents are entitled to the child deduction (social security deduction) until the end of the initial education.

Education and living costs of (minor) children, which are incurred by the parents, are taken into account for tax purposes through the child deduction and the additional insurance deduction. Costs exceeding this are deemed to be non-deductible private living expenses (sports courses, holiday camps, playgroups, private lessons, language schools, etc.).

No. A lease agreement is not a loan agreement and therefore does not constitute an interest-bearing capital debt.

Yes, the special deduction upon the gainful employment of both spouses can be claimed if, instead of income from gainful employment, alternative income such as the unemployment benefit or maternity benefit is declared. 

For the assessment of social security deductions, the situation on 31 December of the respective tax period or at the end of the tax liability is decisive (principle of cut-off date).

No, donations are generally deductible at the time of payment. The date of the cash outflow is decisive (postmark for cash payments at the counter, or date of the debit note for bank transfers).

The costs for preparing a tax return are not deductible.

No, relocation costs are regarded as private, non-deductible living expenses.

Debt interest can only be deducted to the extent that it does not exceed the gross income arising from movable and immovable assets (including imputed rental value) and an additional amount of CHF 50,000.

Yes. If parents are responsible for a child's means of subsistence and are therefore entitled to a child deduction, they can deduct the sickness and accident costs borne by them.

Yes. The annual deposits can be deducted as property maintenance, provided that the funds are used to cover the maintenance costs of the community facilities.

One-time contributions of a property owner, such as cable connection fees for television and radio and other connection fees for sewerage, water, gas, etc., are not deductible.

Yes, the total effective, deductible maintenance and administration costs can be deducted. Even if they exceed the imputed rental value.

In the case of property held as private property, the deduction must be made either at the time of maturity or at the time of payment of the debt. Once a choice has been made, it must be adhered to.