FAQ

1. What are the different wage brackets?

Bracket A
For single taxpayers (unmarried, de facto or legally separated, divorced and widowed taxpayers).

Bracket B
For sole earners who are married, legally or de facto living in unseparated marriage as well as in civil union, for taxpayers who are widowed, living separated de facto or legally, divorced or unmarried, living together with children or persons requiring support and who pay for most of their livelihood; this bracket is divided into different columns (“without child”, “with 1 child”, “with 2 children”, etc.).

Bracket C
For spouses who are married, living together in legal and de facto unseparated marriage and who are both working full-time in Switzerland (double income); also this bracket is divided into different columns (“without child”, “with 1 child”, “with 2 children”, etc.) .

Bracket D
Special rate for sideline income (weekly work time under 15 hours and monthly gross income under CHF 2,000) as well as additional income if the insurer does not align it to the policyholder according to the insured income or if it is alongside earned income.

Bracket G
For cross-border commuters who regularly return to their German place of residence.


Every canton has its own fiscal law. In case of doubt, please contact your cantonal tax authority.
2. Which are the most important facts that immigrants should know about withholding tax?

- Withholding tax is kept back by the employer and paid directly to the according cantonal tax office.
- Withholding tax is calculated from gross wage including all supplementary allowances (child, meal, travel allowances) and lump sum allowances.
- Withholding tax depends on the canton. Tax rates differ from canton to canton. (Also seeWithholding Tax Calculator).
- The employer receives a wage bracket disposal from the communal tax office from which the according bracket classification (A, B, C, etc.) is shown. The employee can raise an objection at the responsible communal tax office in writing or personally if the classification should not comply with the facts.
- Withholding tax should be declared on the pay slip and on the wage statement at the end of the year.

3. Is the calculation the same or similar in all cantons? According to which parameters is this calculation made?

On average, the cantonal withholding tax is calculated from the tax rates of all communes of a canton. The calculation is always made on the gross income including all supplementary allowances.

4. Is withholding tax calculated according to place of residence or place of work?

Calculations made according to place of residence.

Note for German cross-border commuters: here, the principle of place of work applies. Switzerland is entitled to a proportional withholding tax deduction of 4.5 percent of gross income. The cross-border tax of 4.5 percent which is levied in Switzerland is credited by the German Financial Authorities.

5. When is no more withholding tax levied?

With the receipt of a C residence permit or after marriage with a Swiss citizen or a person with a C residence permit, withholding tax is no longer levied from the subsequent month.

6. Which deductions can be claimed from withholding tax?

- Contributions to pillar 3a can be claimed. Here, the same provision amount as for Swiss citizens is deducted (currently CHF 6,566).
- Pension fund buying
- Interest on debt (only consumer credit, no mortgage interests)
- Costs for further education, no education costs
- Costs for illness and accidents as well as costs due to invalidity given the costs are higher than 4% of gross income (e.g. gross income CHF 75,000: 4% = CHF 3,000)
- costs due to disability
- Costs for child care

Exact information is to be found on the websites of the cantonal tax offices.

If a correction calculation is applied for, this application and the necessary enclosures described on the form as well as the bank details have to reach the cantonal tax office by post by 31st March 2011 for the year 2010.

7. Who can immigrants turn to for tax-related questions?

Basically, all necessary forms for withholding taxpayers can be obtained online from the according tax offices or from the communal tax office. In the case of tax-related questions, a tax consultant can provide further help.
Addresses of Swiss tax offices