Modification and payment of installments

In the Swiss system and for persons who are not taxable at source, it is preferable for each taxpayer to pay each month the tax corresponding to the month due. These interim instalments will all be added together to determine the annual balance paid by each taxpayer.

These instalments are not final and do not in any way determine the tax actually due by the tax authority.

What are the advantages of paying instalments?

  • Spread the tax burden over the whole year and avoid the taxpayer having to pay a large amount of money after the final taxation.
  • To benefit from interest in favour of the taxpayer as in a savings account of a traditional bank.
  • Avoid paying interest to the tax authorities because they believe that the tax is due at the end of each month.

How are instalments determined by the tax authorities?

For persons moving from a B permit to a C permit, the tax authorities use the annual amount of tax at source to determine the instalment to be paid.

For holders of Swiss nationality or a C permit, the tax administration generally bases itself on the previous year's taxation.

In the event of a change in circumstances compared to the previous year, for example: separation, divorce, increase or decrease in income, purchase or sale of real estate, repurchase of a second pillar, it is preferable to apply to the tax authorities for a change in the instalments.

To properly estimate these instalments, we recommend that you use a firm such as ours, which not only allows you to pay almost exactly the amount of tax due, but can also provide you with advice before the end of the tax year to reduce your tax burden.