What is the provisional tax bill?

As the name implies, the provisional tax invoice is a presumed estimation of the tax liability. It is intended to help taxpayers prepare for the financial burden of the tax bill.

Deadlines for provisional tax invoices

The timing of the issuance and the deadline for settling the invoice vary from canton to canton. Generally, the provisional invoice is issued in the first quarter of the calendar year and should be paid by October or November.

How is the provisional tax invoice calculated?

The provisional tax invoice is generally always based on the tax factors from the previous year's provisional invoice. Changes are only made if the tax office identifies a significant change in income or assets based on the submitted tax return, or if the taxpayer requests an adjustment to the provisional tax invoice. However, such an adjustment must always be justified, especially if the bill is to be reduced.

It is recommended to inform the tax office of significant financial developments to keep the provisional invoice as current as possible.

Does the provisional tax invoice need to be paid?

Does the tax invoice have to be paid compulsorily, and can one be prosecuted for non-payment? Unfortunately, as with most tax-related issues, the answer is the same: it depends on the canton of residence. Although a provisional tax invoice does not represent a legally binding decision, the canton can treat the provisional tax invoice as a contestable decision. If this is the case, taxpayers can be prosecuted for provisional taxes. So, as always, it is best to inquire with the cantonal authorities and ideally not let it get that far.