Withholding tax reform

07.04.2020 - Withholding tax is a tax deducted at source by the Confederation at a rate of 35%. It is levied specifically on investment income. This includes interest, client balances, income from participation revenue and the corresponding income from collective investment schemes in accordance with the Collective Investment Schemes Act. Withholding tax is also levied on certain lottery winnings and insurance benefits. The purpose of withholding tax is to disclose the taxable income and assets of people liable to tax in Switzerland. If they declare income and assets in their tax return, the withholding tax levied will be refunded in full. Investors resident abroad are entitled to a partial or full refund of the withholding tax, depending on the applicable double taxation agreement. In cases where no double taxation agreement exists between Switzerland and an investor's country of residence, or only a partial refund is provided for, the withholding tax is primarily used to generate tax receipts. 

Fact sheet

Last modification 07.04.2020

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