Withholding tax
All foreign employees without a C-ID card are subject to withholding tax. The tax is comparable to the German wage tax and is deducted directly from the salary by the employer each month and forwarded to the tax authorities. Don't worry, this tax does not mean additional expenditure, but is rather a simplification and one has time to get used to the new tax system.
Only the canton of residence counts for the amount of the withholding tax. For all those who are no longer subject to withholding tax and who are treated equally with the Swiss, the municipality of residence also counts. Although this sounds identical, it can mean considerable differences, as all communities and cantons are in constant tax competition and not, as in Germany, where the same taxes are levied in the north and south. The Comparis
withholding tax calculator is a good way to get information about the future tax and its amount.
Anyone earning more than CHF 120,000 per year must also submit a tax return. The exact income limit varies from canton to canton. All other persons subject to withholding tax do not have to do this, but it would be worthwhile in many cases.
Swiss citizens or foreign employees with a C permit submit a tax return for the previous year at the beginning of the year. They then pay their taxes for the previous year and an advance for the current year. This can be done in whole or in instalments. Therefore, as soon as you are no longer liable for withholding tax, you should set up reserves during the year in order to be able to pay this bill well.
Wealth tax
It is important to know that there is a wealth tax in Switzerland. However, this tax is only in the per mille range and is progressive, with a few exceptions. Depending on the canton, there are additional allowances depending on marital status and number of children. You can find out the exact tax rate from the cantonal tax office. They are generally very helpful.
Capital gains tax
There is no capital gains tax in this sense. All banks are obliged to pay 35% of the interest as withholding tax. This can be reclaimed on the tax return, stating the assets. The idea is rather to declare the assets as completely as possible for the wealth tax.
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