Glossary
Withholding Tax
Withholding Tax is a security tax levied by the Confederation on certain capital income, such as interest and dividends. It is deducted directly at source and can be reclaimed by persons subject to tax in Switzerland, provided the income has been properly declared.
At a glance
01
The rate is 35 per cent on capital income such as interest and dividends and 15 per cent on life annuities (source: ESTV).
02
It is deducted at source and serves to ensure correct tax declaration.
03
Persons subject to tax in Switzerland who have correctly declared the relevant income are entitled to a full refund.
Frequently asked questions
Yes, provided you are subject to tax in Switzerland and have correctly declared the relevant income and assets in your tax return. Withholding Tax functions as a security tax: those who declare receive a refund; those who do not lose their entitlement.
Part of the topic
Vermögensverwaltungsmandate
Sources: Eidg. Steuerverwaltung (ESTV)