Insurance in Switzerland
Withholding tax – Quellensteuer
Withholding tax is a tax deducted directly from income. Persons subject to withholding tax are:
– are resident in Switzerland for tax purposes but do not yet have a permanent residence permit (permit C) or do not have tax residence in Switzerland due to their income (foreign commuters, weekly residents, speakers, athletes, artists, etc.).
The employer is obliged to deduct the tax due from the salary and remit it to the tax authority.
If the income exceeds a certain limit, a subsequent ordinary assessment of all income and assets for tax purposes is carried out for foreign employees who are resident in Switzerland. At the federal level, the limit is CHF 120,000 (sole exception: Geneva: CHF 500,000).
Withholding tax rates vary from canton to canton. More information on how withholding tax is calculated and who is subject to withholding tax can be obtained from the cantonal tax administrations.
Foreign residents of Switzerland who hold a permanent residence permit (permit C) nevertheless declare their income and assets by means of an ordinary tax return, exactly in the same way as Swiss residents.