Withholding Tax Calculator
Calculate the federal withholding tax of 35% on investment income.
Withholding tax (Verrechnungssteuer) is a federal source tax of 35% on investment income. It is levied on dividends, bank interest, lottery winnings, and certain insurance benefits. For persons resident in Switzerland who correctly declare their income, it is a security tax: it is fully refunded when filing the tax return.
When does withholding tax apply?
The 35% withholding tax is levied on:
- Dividends and profit distributions from Swiss companies
- Interest on Swiss bank deposits and bonds
- Lottery winnings above CHF 1,000 (withholding tax; the income tax exemption of CHF 1,000,000 under the Gambling Act is independent)
- Surrender values of capital insurance policies
The tax is withheld by the debtor of the income (e.g., the bank or the company) and remitted to the FTA. The recipient only receives the net amount (65% of the gross income).
Refund of withholding tax
Persons domiciled in Switzerland receive the withholding tax back in full, provided they declare the income in their tax return. The refund is made by crediting it against cantonal and municipal taxes or as a cash payment.
Anyone who fails to declare income forfeits the right to a refund. Withholding tax thus serves as an incentive for correct declaration. Foreign recipients may apply for a partial refund depending on the applicable double taxation agreement.
Frequently Asked Questions
- Will I get the withholding tax back?+
- When is no withholding tax levied?+