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Glossary

Withholding Tax at Source

Withholding Tax at Source is an income tax deducted directly from wages for certain foreign employees. It applies in particular to persons resident in Switzerland without a settlement permit, as well as cross-border commuters without tax residence in the country. Employers deduct the tax from wages and transfer it to the cantonal tax administration. It must be distinguished from the federal Anticipatory Tax, which the Confederation levies as a security tax on capital income such as interest and dividends.

At a glance

01

Liable to withholding at source are in particular foreign employees without a settlement permit and cross-border commuters without residence in Switzerland.

02

The employer deducts the tax from wages and remits it to the cantonal tax administration.

03

Not to be confused with the Anticipatory Tax, which the Confederation levies on capital income and which can be reclaimed.

Frequently asked questions

Liable to withholding at source are foreign employees resident in Switzerland who do not yet hold a settlement permit, as well as persons without tax residence in Switzerland who earn employment income here, in particular cross-border commuters. The employer deducts the tax directly from wages.
Withholding Tax at Source is a cantonally levied income tax on the wages of certain foreign employees. The Anticipatory Tax, by contrast, is a federal security tax on capital income such as interest and dividends, which can be reclaimed if correctly declared. These are two different procedures handled by different authorities.

Part of the topic

Steuern (privat)

Sources: Eidg. Steuerverwaltung (ESTV) · Systematische Rechtssammlung (fedlex)