Saxer tips BS
Saxer tips for your tax return. Summary of important points.
Please notify us of any changes which took place in 2018, such as:
- Birth of any children (name, date of birth), or children which are newly registered with you
- If children are no longer in education (as of December 31, 2018)
- Changes in marital status
- Gifts/legacies (when, from whom/to whom, how much?)
- Changes in employment status (e.g. change from 60% working hours to full-time on July 1, 2018)
- Property sold or bought in Switzerland or abroad
Here is the checklist of documents required for your tax return (these are guidelines and do not claim to be exhaustive)
- Original tax return form 2018 and envelope excl. supplementary sheets (without instructions)
- Statements as of December 31, 2018 and interest statements 2018 for all bank and postal accounts (Switzerland and abroad)
- Wealth tax statements or statements of deposit of all your shares as of December 31, 2018 held in Switzerland and abroad
- Bank charges, custody account fees, safe fees, etc.
- Any debit interest certificates for 2018
- Lottery: Winnings more than CHF 1000 are taxable and we need the original document
- Sickness expenses: Please request a statement from your health insurance provider showing expenses which you paid yourself in 2018
- Disability-related costs
- Documents for charitable donations made in 2018
- A document of the surrender value of life insurance as of December 31, 2018
- Yearly salary statements, attestations of unemployment benefit, daily allowance payments received, signed income statement in the case of self-employment
- Gaps in employment: Confirmation that you were not working between such and such date and did not earn any income during this period
- Specific occupational expenses (advanced training, membership, etc.)
- Documentary evidence of any voluntary contributions payments into the pension funds
- Certificate confirming your contributions to third pillar pension
- Possible confirmation from your employer regarding use of car (see inside)
- Documentary evidence of cost of third-party childcare (day care centre, after-school day care centre, etc.) if both parents are working, disabled or in further education tax relief available for children up to 14 years old
- Taxes on earnings from gainful employment with simplified payment procedures (e.g. for cleaning ladies, etc.) have already been paid. However, the gross salary must be indicated for information purposes. Please also send in 2018 statement.
- Pension entitlement statements from your pension fund 2018 or credit not of the bank transfer from your pension fund 2018
- Evidence of AHV pension 2018 (attestation from compensation fund or credit advice).
- Any AHV contributions paid in 2018 (persons who are retiered, disability pensioners, etc.)
- Recipients of care allowances for persons unable to look after themselves: Also enclose an up-to-date ruling from the compensation fund. This qualifies for a special deduction.
- Details of maintenance contributions/alimony
- If you are a single with children we need to know if you lived together with a partner on December 31, 2018.
Shares, bonds and investment funds
A wealth tax statement and the confirmation of dividend payments from your bank will provide all the necessary information
or in the case of custody statements a list of taxable values is virtually essential. Otherwise, you will have to pay for the work we have to do in order to identify the various purchases and sales. It’s necessary to provide the dividend statements 2018 (payment date 2018).
Send us a list you have prepared yourself. In this case, we shall copy your figures over to your tax return without checking them. We shall forward any questions from the tax office regarding these figures to you.
Debit interest 2018 paid to banks or private individuals can be deducted from income. If you currently have a consumer loan of any kind, call the lender and request a debit interest certificate for 2018. Default interest (on tax liabilities) also qualifies as debit interest.
Charitable donations (only for an institute in Switzerland)
Please send us deposit receipts, letters of thanks for 2018 or prepare a list of charitable donations yourself (minimum CHF 100.-).
Occupational expenses / further education
We automatically apply the flat-rate deductions for occupational expenses. If you need to commute to work by car we require the following:
- Letter from your employer confirming that you need your car or
- Evidence showing that it would take you longer than 1¼ hours to commute by public transport (one way). Please tell us the length of your journey to work in kilometres (one way). Please also see under innovations on the first page.
- Deduction for meals are only possible when your midday-break is to short to eat at home (Time at home 45 Min). Please talk to us about it.
- Other occupational expense: If you have receipts or bills for further education, union fees etc. you can send them to us. 2018 the continuing education fees should be easier to be accepted from the tax authorities.
Sickness expenses and disability-related costs
In 2018, sickness expenses borne by you yourself will be partially deductible (excluding health insurance premiums), if the amount exceeds 5% of your net income. To claim such expenses you can:
- request a statement from your health insurance provider showing expenses which you paid yourself or
- prepare your own list (list doctor’s bills, deducting contributions paid by your health insurance provider and enclose original bills)
- additional deductible items include: cost of dental treatment, glasses, orthopaedic insoles, etc. The additional deduction is only possible, if they not are cleared by your health insurance. Please enclose relevant bills.
Many attestations from health insurance providers show “uninsured expenses”. These need to be backed up with documentary evidence. Otherwise, you risk that the tax office will not approve any deduction. Please enclose the relevant paperwork.
A big part of nursing home costs for persons in need of nursing care qualify as sickness expenses, or as disability-related expenses for cases classed as care level 2 or higher (based on the BESA scale). Please ask for a yearly statement.
Flat-rate deductions for recipients of care allowances for persons unable to look after themselves. Please enclose an up-to-date ruling from the compensation fund.
Property owners (in Switzerland as well as abroad)
- list of any rental income 2018 (rent excluding ancillary costs)
- mortgage interest 2018
- maintenance costs: send us all your original invoices (payment date 2018). We shall prepare a list of deductible (value-preserving) expenses (billed according to the amount of work involved) or
- send us a list you have prepared yourself. In this case, we shall copy your figures over to your tax return without checking them. We shall forward any questions from the tax office regarding these figures to you.
- for owner-occupied apartments: To enable us to determine whether you will benefit more from a flat-rate deduction or from a deduction of actual expenses incurred we need to see the annual statement from the condominium association for 2018.
- deduction for underuse: if you don’t use all rooms of your house/apartment we advise you.
Bills from the tax administration
If you enclose last year’s tax bills (incl. details of your assessment), we can check whether all deductions were accepted. If you have to pay significantly more than we predicted we recommend you to send us the demands as soon as you receive them so that we can get in touch with the tax administration. We hope you will understand that we have to charge for the work this entails. An objection can be done within 30 days from the invoice date. It has to be in written way if no mutual consent can be found with the tax authorities.
Reduce your tax bill
The very best legal way to cut down your tax bill is undoubtedly by paying into a Pillar 3a pension scheme. We will be happy to provide you with advice on the options available.
Our company has a very good reputation at the tax authorities. This is mainly because we do things properly. To ensure that we retain this good reputation we make a point of investigating anything that is not clear. We would therefore urge you to stay on the side of caution and send us too much paperwork rather than too little.
A few points on our own behalf
- Copies? – No thanks! It’s easier for us to make all the necessary copies ourselves.
- Please send us your documents and paperwork without staples or paperclips. This makes our work much easier. Thank you.
- On the tax form you will find the deadline of March 31, 2019. We will ask for all our customers for which we completed the tax return 2017 an extension of time limit (free of charge) until September 30, 2019. Please don’t send the extension card to the tax administration otherwise they have to do the work twice. All other customers send in the card (deadline extension) with date September 30, 2019. We will ask for a second extension (fees CHF 40.–) from September 30, 2019 until December 31, 2019 if we received the tax form 2018 September 30, 2019 the latest.
- Payments at the counter of the post office will cause charges. We would appreciate if you pay our invoice in cash or through a bank/post transfer. Thanks.
- Switzerland will collect data from January 1, 2017 on and exchange them with more than 100 countries.
- Since January 1, 2010, tax evaders have the chance to file a one-off voluntary disclosure of their affairs without being prosecuted and without incurring a fine. In previous years we have been able to assist numerous clients wishing to clear their conscience. Ask Pia Krummenacher or Claudia Schwarz to explain what you need to do.
Basel, in January 2019 Your Saxer-Team