Who is subject to withholding tax?
Foreign employees without a C residence permit (yearly, weekly and short residency, cross-boarder commuters as well as asylum seekers) who have their tax-based place of residence or their residency in Switzerland.
Also subject to withholding tax are Swiss citizens living abroad.
Exempt from withholding tax are – despite missing residence permit – married foreign employees or those living in legally or de facto unseparated marriage or in civil union whose spouses or partners are Swiss citizens or possess a C residence permit.
Calculation basis for withholding tax
The monthly gross wage is decisive for the calculation of tax deduction. Supplementary allowances and additional benefits such as piece rates, meal, travel or child allowances as well as tips have to be considered in the month in which the payment, money transfer or clearing is carried out.
Gratifications, loyalty premiums, 13th monthly salary and similar benefits have to be added with the gross wage of the according month within the time of the effective payment for the calculation of the withholding tax deduction.
What does withholding tax contain?
Withholding tax contains all tax claims from the Federation, the cantons and the communes including church tax (if you are subject to church tax) in Switzerland.
Subsequent statutory assessment
If the gross income which is subject to withholding tax deduction reaches more than an annual of CHF 120,000, a subsequent statutory assessment of the whole income and assets is made. Exempt from this are cross-boarder commuters, short residency holders and persons without residence in Switzerland.
The received withholding taxes are calculated interest-free onto the taxes that have to be paid from the statutory assessment. Foreign employees, however, continue to be subject to withholding tax (backup withholding).
Continuative links on "withholding tax":
Swiss Federal Tax Administration FTA
Swiss-Tax
