Work permits and tax in Switzerland

The rule in the law

The law doesn't list the permits one by one. It only asks whether someone holds a settlement permit. Employees without a C permit who live in Switzerland pay withholding tax: the employer takes it off the salary every month. This is the same for B, L, F, N, S and Ci permits.

With a C permit or Swiss citizenship the employer deducts nothing. You file a tax return and get a bill from the canton and the commune.

Marriage and the C permit

• Married couples pay no withholding tax if one of the two is a Swiss citizen or holds a C permit, provided they live together.
• If you get a C permit or marry a Swiss citizen or a C permit holder, you are taxed the ordinary way for the whole year. The deduction from your salary stops in the following month, and the withholding tax you paid is credited.
• After a divorce or separation from such a person, withholding tax applies again from the following month.

A tax return on top of withholding tax

• From a gross salary of CHF 120’000 a year the tax return is required. For couples with two salaries it is enough if one of the two reaches the amount. The tax is then based on your commune and your real deductions, and the withholding tax is credited.
• The requirement stays until you stop being taxed at source, even if your salary later falls below the amount.
• If you have other income that isn't taxed at source, you also have to file a tax return and ask for the form by 31 March of the following year.
• Below the amount you can ask for a tax return until 31 March of the following year. You can't withdraw the request, and it also applies to the following years. Without a request the withholding tax is final and you get no further deductions.

The two calculators show whether a request pays off. The withholding tariff includes flat amounts for professional expenses and insurance premiums and deductions for the family. In a tax return your real deductions and the multiplier of your commune count. Compare the salary calculator with withholding tax with the income tax calculator.

Living abroad

If you live abroad and work as an employee in Switzerland, you pay withholding tax. This applies to cross-border commuters with a G permit, to weekly residents and to short-term workers, whatever their nationality or permit. Swiss citizens and C permit holders pay withholding tax in this case too.

• The tax treaty with your country of residence can limit or remove the deduction. The rules for Germany, France, Italy and Austria are on the page for cross-border commuters.
• You can ask for a tax return until 31 March of the following year if as a rule at least 90% of your worldwide income is taxable in Switzerland. Your spouse's income counts too.
• For cross-border commuters from Italy under the new agreement this tax return is not available.

Ci permit and legitimation card

The Ci permit goes to spouses and children of embassy staff and of staff of international organisations who work in Switzerland. Swiss law applies to that work without privileges, so they pay withholding tax like other employees. The main holder of an FDFA legitimation card is a different case: their tax privileges depend on the agreement with each organisation, and this page doesn't cover them.

Self-employed

Withholding tax applies only to the salary of employees. If you are self-employed, you file a tax return whatever your permit. For that, use the self-employed calculator.