Tax glossary
Provisional tax invoice
The provisional tax invoice is an interim tax bill based on an estimate and paid before the final assessment — the final invoice settles the difference later.
Twelve months or more often pass between the end of the tax year and the final assessment. So that the municipality has revenue in the meantime, it issues a provisional tax invoice (Akontorechnung) — an interim bill based on your most recent assessment or on your own estimate.
The provisional invoice is not a final tax claim. As soon as the assessment is available, the account is settled: any shortfall is charged, and any overpayment is refunded. This settlement is called the final tax invoice.
Because the provisional invoice is based on an estimate, it is often inaccurate — especially after a change of job, retirement, marriage or a move. In such cases you can have it adjusted.
Compensatory interest and default interest
The Canton of Zurich charges and pays interest on both underpaid and overpaid taxes. If you have paid in more than you owe, you receive credit interest; if you have paid too little, you owe compensatory interest from the relevant due date.
The interest rates are set annually. When rates are higher, deliberately overpaying can pay off — when they are very low, it usually does not. It is worth checking the current credit interest rate once a year.
Having the invoice adjusted
You do not simply have to accept an incorrect provisional invoice.
- Lower income: ask the municipal tax office for an adjustment — informally, with a brief explanation
- Higher income: pay in more voluntarily to avoid compensatory interest
- Paying in instalments: agree a payment plan before any reminders are issued
- After a move: check whether the new municipality is issuing the invoice
Don’t confuse the invoice with the assessment
A provisional invoice is not a formal decision — it cannot be challenged by objection, and it never becomes legally binding. If you disagree with the amount, ask for an adjustment rather than filing an objection.
Conversely, a pending objection against your assessment does not change your obligation to pay: you continue to pay according to the provisional invoice, and the account is settled once a decision has been made.
Example: retiring in the spring
Someone retires in April. The provisional invoice is still based on the previous year’s full employment income and is correspondingly high, even though from May onwards their income consists only of the state pension (AHV) and their pension fund annuity.
An informal request to the municipal tax office stating the expected new income is enough to reduce the instalments. Without a request, the person pays too much for a whole year and only gets the surplus back after the assessment — with interest, but tied up in the meantime.
Frequently asked questions: Provisional tax invoice
Do I have to pay the provisional invoice even though there is no assessment yet?
Yes. The provisional invoice is payable. If it remains unpaid, default interest accrues and reminders follow.
I earned considerably less — what should I do?
Ask the municipal tax office informally to adjust your instalments and state your expected income. It is straightforward and is usually accepted.
Is paying in advance worthwhile?
That depends on the current credit interest rate. If it is higher than the return on your savings account, paying in advance is attractive — otherwise it is not.
Questions about this term?
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