The Ordinary Subsequent Taxation (TOU), allows taxpayers taxed at source (on salary, income acquired in compensation or other income), to file a tax return the following year in order to claim effective expenses or additional deductions or to declare other income.
This declaration is treated like a classic tax return, but it is made after the withholding tax has been deducted, hence the name Ordinary Subsequent Taxation.
For non-residents, it can be requested according to the case explained in the question on border status.
For residents in Switzerland, it can be on request or mandatory.
A resident taxed at source is subject to the TOU if he or she is in one of the following situations:
– It was subject to a subsequent regular tax assessment (mandatory or on request) in the previous year.
– He is a property owner in the canton (rental value).
– He or she has a gross annual income of 120,000 francs or more (for a married couple, at least one of the spouses must have an annual income of more than 120,000 francs). If you take a job during the year, periodic income such as salary, for example, is annualized
– He has taxable assets
– He/she receives income that is not subject to withholding tax (alimony received, income from assets, housing allowances, income from land or rental value, etc.).
– He is married with a spouse who is not employed.
– He requested a subsequent ordinary taxation within the legal time limits.
Once a resident is subject to the TOU, whether mandatory or upon request, it will remain applicable for all subsequent tax years until the end of his or her liability to withholding tax, even if he or she no longer qualifies for or wishes to benefit from the TOU.
If they are living in a joint household, the spouse of the person who is subject to TOU, either mandatory or on request, is also subject to TOU and must complete the tax return. The TOU will remain mandatory for the spouse, even in the event of separation or divorce.
In general, the TOU results in a higher taxation than the taxation at source. This means that you will have to pay extra taxes.
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