Tax

The Tax System

The tax system in Switzerland has a federalist structure:

  • The federal government levies tax on income (federal tax),
  • while the cantons and communes levy tax on income and assets (state and communal taxes).

While the rate of federal tax is the same in all cantons, the tax burden represented by state and commune taxes varies between the individual cantons, and between the individual communes within those cantons. Tax is levied once a year,

with the amount calculated on the basis of an annual tax return. The tax that is actually due depends on where you live, your income and assets, your marital status, your religious denomination, and how many children you have.

Tax return

Tax Liability

All natural persons and legal entities (joint-stock companies and cooperatives) that are domiciled in Switzerland are liable to tax. In the case of natural persons, families are taxed together. Individuals who work in Switzerland but do not have a permanent residence (“C”) permit are subject to withholding tax.

Withholding tax