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LIVING IN SWITZERLAND

Taxes to work permits: Who deals with what in Switzerland?

Like other countries, Switzerland too is a bureaucracy, where various government agencies oversee different functions of public and private life.

Taxes to work permits: Who deals with what in Switzerland?
Car inspections are the responsibility of your canton. Image by Ewan from Pixabay

Unless you are a hermit and live off the grid, you will, sooner or later (probably sooner), have to deal with administrative processes of one kind or another.

In this respect, Switzerland is no different from any other nation, with the only difference being that because it is small and well-organised, the bureaucratic machine is running smoother here than elsewhere.

On the plus side, because it is fairly efficient, dealing with various public entities is probably less of a hassle in Switzerland than in less tidy administrations.

If you are a foreigner, especially a newly arrived one, you may not yet be familiar with the workings of various government agencies — in other words, who does what.

The first thing to know is that very few tasks that are likely to affect you personally are done at the federal level; most administrative processes are handled by cantons and municipalities.

These are some of the most important services, and who is responsible for providing them:

Pensions: federal and cantonal

The Federal Department of the Interior regulates and supervises obligatory pension plans, while the Federal Social Insurance Office implements the scheme.

Your pension, however, will be paid by your canton’s social insurance office

Work / residence permits: cantons

Permits are delivered by your canton, though the application procedure is different depending on whether you are an EU / EFTA national or a citizen of a third country.

Cantonal authorities are also responsible for renewing / extending expiring permits.

Taxes: cantons

As the cantonal tax office calculates how much taxes you owe in any given year, your declaration must be sent to cantonal authority

They will collect the cantonal, federal, and municipal taxes, distributing the money proportionally among them.

Driver’s license / car registration: canton

Anything related to driving — tests, licenses, vehicle registrations, and inspections — is the responsibility of cantonal automobile services

Health insurance subsidies:canton

If the monthly premiums of your obligatory health insurance (KVG / LaMal) exceed 8 percent of your income, then you may qualify for subsidies (premium reductions) from your  canton of residence.

You can apply for them here

READ ALSO: How do I apply for healthcare benefits in Switzerland?

Social aid: canton and municipality

Welfare assistance comes under the responsibility of your canton, which will consider your application and determine if you are eligible for financial help.

However, you should submit your application for assistance to your municipality, which will then transfer it to the cantonal welfare office.

As you can see, most public services are managed by cantons, so you may be wondering what is the role of your local municipality / commune?

They do their share as well.

For instance, they manage a register of residents, organise and maintain their own fire brigades, civil defence units and police forces (the latter two mostly in bigger communes).

They are also responsible for schools on their territories, as well as local energy supplies, municipal roads and parking, waste management, and infrastructure planning and upkeep, among other tasks.

READ ALSO: What exactly does your Swiss commune do?

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For members

MONEY

Do adult children in Switzerland have to support their parents financially?

Usually, it is the parents’ responsibility to ensure their kids are well taken care of financially. But can Swiss authorities force the children to return the favour in times of need?

Do adult children in Switzerland have to support their parents financially?

In most cases, once children are grown up and out of the house, they are (or at least should be) self-sufficient in terms of finances.

Parents too should breathe a sigh of relief that they are no longer obligated to pay for their children’s expenses, except perhaps for giving them some money here and there as a gift.

This is what happens in the best-case scenario.

But what if things don’t go according to this plan — for instance, if the parents find themselves in financial straits and can’t  afford to pay their bills?

Family obligations

Generally speaking, the truly needy people who don’t have enough income to pay for their basic living expenses will receive financial help from the government, in the very least in the form of the health insurance and housing subsidy.

READ ALSO: Can I get financial help in Switzerland if I’m struggling to pay the bills?

However, before doling out public money, authorities will see whether relatives should be made to help the struggling individuals pay their bills.

(In this context, ‘relatives’ means only those in the direct line of descent: grandparents, parents, and children.)

They will do it by checking the tax status of these relatives — how much they earn and what other financial assets they have — to determine whether, and how much, they should be paying toward their parents’ expenses.

Obviously, you will be expected to pay up only if your own financial situation allows it; you will not be forced to part with your money if you have very little of it yourself.

 ‘Favourable financial circumstaces’

Based on a Federal Court ruling, if the adult child  lives in ‘favourable financial circumstances’ they are required to help out their struggling parents.

The Court defined ‘favourable financial circumstances’ as income and assets allowing a comfortable life.

‘Comfortable life’, in turn, was defined by the Swiss Conference for Social Welfare (SKOS), as a taxable annual income of 120,000 francs for a single person, and 180,000 francs for married couples.

“If you have minors in your household, the limit is increased by 20,000 francs per child,” according to AXA insurance.

It goes on to say that you can deduct an exempt amount from your taxable assets.

“Your annual depletion of assets is deducted from the remaining amount. This means that if you are obligated to provide financial support, you are permitted to use part of your assets yourself each year; you don’t have to devote your entire assets to providing support.”

At between 18 and 30 years of age, this is 1/60th per year; from 31 to 40, 1/50th per year; 41 to 50, 1/40th per year; 51 to 60, 1/30th per year; and from the age of 61,1/20th per year. 

Are there any exemptions to these rules?

Aside from not having sufficient funds, you could be exempted from paying if, say, your parents, or parent, have not lived up to their own financial obligations toward you.

In Switzerland, parents are required to  provide financially for their children until the age of majority, and even beyond that if they are still studying or undergoing vocational training — typically, until the mid-20s.

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