OBLIGATION TO PAY TAX

In Switzerland, the costs for public services such as infrastructure, transport, education, police and army, health, social security, etc. are primarily paid for from the taxes of private individuals and companies and VAT. In this way, everyone contributes to a well-functioning public life.

HOW ARE TAXES COLLECTED?

To calculate the income and wealth taxes to be paid, Swiss nationals as well as people with a C permit have to complete a tax return every year. The tax return forms are sent to them at the beginning of each year. Free-of-charge tax software is available to help people fill out the forms, which can be submitted electronically (e-filing) or by post. Foreign employees with a domicile or residence in Switzerland under tax law without a C residence permit and who are not married to someone who is a Swiss citizen or is in possession of a C permit have their taxes deducted directly from their wage or salary (withholding tax/tax at source). This concerns people with a B residence permit, asylum seekers and foreign nationals who commute on a weekly basis. Someone liable to tax at source (withholding tax) still has to complete a tax return if they are subject to subsequent statutory assessment (e.g. earned income of at least CHF 120,000).

If you have any questions, please contact your municipal tax administration, an advisory centre or a fiduciary agent.