Withholding tax and wealth tax in Geneva, a new section in the 2016 adjustment request
Firstly, it should be remembered that, in terms of withholding tax, especially in Geneva, only income tax is taken into account. However, this does not excuse people subject to withholding tax, resident in Geneva, from paying a tax on their wealth.
Since the 2016 tax period, the form for requesting a withholding tax adjustment in Geneva has contained a new section. This section appears on page 3 of 4, under figure 4. In this section, taxpayers subject to withholding tax, resident in Geneva, must answer the following question:
"Did you have taxable assets, taxpayer and spouse, as at 31/12/2016?"
If the person subject to withholding tax believes that s/he must answer "yes" to this question, s/he must complete questionnaire ("Assets questionnaire concerning foreigners who possess a residence permit"), indicating the extent of his/her wealth. It should be noted that property assets held in France or anywhere else abroad, for example, may, depending on the situation, result in the application of a wealth tax in Geneva.
If, on this basis, the tax authorities conclude that the person must pay a wealth tax, the latter shall indicate that s/he is no longer subject to withholding tax and must complete a full tax return.
This situation may become problematic in the event that the conditions for applying a wealth tax had already been fulfilled one or more years beforehand.
Persons subject to withholding tax, resident in Geneva, who fail to complete a withholding tax adjustment request must, of course, also complete the "Assets questionnaire concerning foreigners who possess a residence permit" and possibly pay a wealth tax by filing a full tax return.
If you have any questions or require any assistance on this matter, contact us at: 022 787 07 70 or .