Tax declaration with a net worth over 80k | B permit

[nadeem]

hey guys, as I have reached a net worth of 80k( and will probably be at around 100k-120k until end of year) I am wondering whether I will have to do a tax declaration starting this year.

-Up until now I haven’t done any tax declarations since I am 3 years in Switzerland with a B permit and being taxed at source

-Will i get notified that I am forced to do a tax declaration?

-If yes, would it make sense to start investing in a 3a pillar, even though I might end up leaving Switzerland in 5-10 years? For context, currently making 90k a year with hopes of bumping it to 100k next year.
I was originally planning on starting with the 3a pillar after getting a C permit in 2 years.

Any advice is greatly appreciated

 

[sheep4christ]

@nadeem 1) Yes, by law you should do the tax declaration if your NW is more than 80K.

2) No, you won't be notified (how would they know you are above that threshold?), but you will be forced to back-file your taxes for this year and possibly be fined if they ever realize you were above 80K and didn't pass to tax declaration. Now, to be fair, realistically they will never realize / be able to prove if you are just at 100K NW. Obviously if from the moment you become Permit C you start declaring 500K, then they might be investigate it.

3) Yes, it's a good idea to contribute into a 3 Pillar if you are on tax declaration. When switching to tax declaration you generally pay more taxes because the assumptions when on automatic tax deductions are quite generous. 3P is essential to pay less taxes. You can recover the full 3P if you leave Switzerland in cash, paying an exit tax (but the trick is to move the 3P to canton Scwhyz or Zug and pay only 5%-ish of tax). You can also simply live it invested in Switzerland until you retire and withdraw then.

 

[amore]

@sheep4christ The 80k is for canton Zurich, right? How can I search what is it in canton Vaud? Not sure what the search term should be. Also, does this apply to L-permit holders too? I found this information from the canton, but it doesn't say anything about 80k, or any other number, just mentions "le contribuable a de la fortune (mobilière et/ou immobilière en Suisse et/ou à l’étranger)." (translation: the taxpayer has assets (movable and/or real estate in Switzerland and/or abroad).)

 

[lexiheigh]

@amore There is currently no known limit for Vaud, so you can assume only the 120k income threshold is relevant for you at this time.
This article in German lists all the currently known thresholds: https://www.bdo.ch/de-ch/publikatio...orische-nachtragliche-ordentliche-veranlagung

 

[lenaopoku]

@lexiheigh I thought it is 58'000? Per tax code 800 in the cantonal guide.

La fortune nette n’est pas soumise à l’impôt si son montant n’atteint pas CHF 58 000 ; ce montant est de CHF 116 000 pour les personnes mariées ou liées par un partenariat enregistré vivant en ménage commun.

https://www.vd.ch/etat-droit-finances/impots/impots-pour-les-individus

 

[lexiheigh]

@lenaopoku That is the regular exemption limit for wealth tax and it doesn't necessarily mean you have to do a tax declaration when you are over it unless they explicitly say so somewhere else.