Anticipatory Tax (Swiss Withholding Tax) AT

Register for the anticipatory tax (withholding tax) or reclaim it here. You can also find comprehensive information about anticipatory tax here: forms, interest rates, information on the declaration requirement, all circulars, newsletters and instructions for anticipatory tax or information on foreign withholding tax, organised by country.

The anticipatory tax (withholding tax) in Switzerland is a levy on capital gains, lottery winnings, life annuities, pensions and insurance benefits.

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Questions and answers on anticipatory tax (Swiss withholding tax)

• What is anticipatory tax (Swiss withholding tax)?

  Anticipatory tax (withholding tax) in Switzerland is a tax levied at source by the federal government on the revenue from movable capital assets (particularly interest and dividends), on winnings from gambling as defined in the Gambling Act, on winnings from lotteries and games of skill to promote sales and on certain insurance benefits. The primary purpose of this safeguard tax is to combat tax evasion; taxpayers are prompted to disclose to the authorities responsible for direct taxes the earnings and investment income subject to anticipatory tax, as well as the assets on which the taxable gains were realised.

  • To find out more

    Under certain conditions, anticipatory tax is refunded in cash or by offsetting it against cantonal and communal taxes. The tax is not definitively charged to taxpayers domiciled in Switzerland who declare their earnings subject to anticipatory tax and the corresponding assets, or show them in their accounts.

    This anticipatory tax mechanism can be illustrated as follows:

    

    Anticipatory tax is an impersonal tax, i.e. it is levied regardless of whether the recipient of the taxable benefit/payment has the ability to pay it.

    The tax rate is

    • 35% for investment income and lottery winnings
    • 15% for life annuities and pensions
    • 8% for other insurance benefits

    Those liable to the tax are domestic debtors (e.g. banks) of taxable benefits/payments. They have to pay the tax on the taxable benefit/payment and pass it on to the recipient (e.g. accountholder) by reducing the benefit/payment accordingly.

    The tax debtor has to spontaneously register with the Federal Tax Administration, submit the prescribed statements and supporting documents, and at the same time pay the tax (self-assessment principle).

    If tax amounts are not paid on time, default interest is payable without a reminder being issued.

    Recipients of taxable benefits/payments domiciled in Switzerland who correctly complete their tax returns are entitled to a anticipatory tax refund under certain conditions.

    A refund is granted in particular to:

    • Individuals domiciled in Switzerland, provided they duly declared the assets and the investment income earned on them in the relevant tax return for cantonal and communal taxes. The cantons are responsible for refunding withholding tax to individuals, whereby the amount to be refunded is generally offset against cantonal taxes.
    • Legal entities domiciled in Switzerland, provided they duly recognised the earnings subject to anticipatory tax as revenue. Anticipatory tax is refunded directly to legal entities by the Federal Tax Administration.

    The taxpayer has to request a anticipatory tax refund within three years from the end of the calendar year in which the taxable benefit/payment became due.

    If the aforementioned conditions are not met, either no refund entitlement arises or else any existing entitlement is forfeited. Moreover, a refund is inadmissible in all cases where it would lead to tax avoidance.

    This was the legislator's intention, as the purpose of anticipatory tax is to combat tax evasion by putting fraudsters at a disadvantage to honest taxpayers, with the result that fraudsters have to bear at least a minimum tax burden in this way.

    Taxpayers who do not exercise their right to a refund or who forfeit it by violating their tax obligations are not released from the obligation to pay the direct taxes due on the assets and investment income concerned.

    Anticipatory tax generally constitutes a final charge for benefit/payment recipients domiciled abroad. However, persons whose country of domicile has entered into a double taxation agreement with Switzerland are entitled to a full or partial anticipatory tax refund, depending on what is provided for in the agreement, provided they meet the conditions set out in the agreement in question.

Claim to refund of anticipatory tax (Swiss withholding tax)

• I received a letter from the FTA about a withholding tax refund. But I did not apply for a anticipatory tax refund.

  Your bank or your representative submitted the application for a anticipatory tax refund. Please contact your bank or representative.

• How can I apply for a anticipatory tax refund?

  You can submit your application for a anticipatory tax refund either online on our website or you can fill out the application using the free software Snapform Viewer. If you use the software Snapform Viewer you must subsequently print out the application and send it to the FTA by post.

• I have submitted an application for a anticipatory tax refund but so far I have not received any response from the FTA.

  The FTA does not send a separate confirmation after the application is received. The FTA processes the applications in the order in which they were received. Processing can take several months, depending on the number and quality of received applications. As the FTA checks around 300,000 applications every year we ask for your patience and thank you for your understanding.

• What documents must I enclose with my application for a anticipatory tax refund?

  All positions listed in your application must substantiated either with a revenue statement or a list of securities. If the securities are deposited at a foreign bank, you must enclose the tax voucher(s).

• Within how many years can I claim a anticipatory tax refund?

  In general, the claim for refund of anticipatory tax expires, subject to the exception stated in Article 32 paragraph 2 of the ATA, if the application is not submitted within three years after the end of the calendar year in which the taxable benefit becomes due.

• How and where can a anticipatory tax refund be claimed?

  Domestic legal entities request the refund of anticipatory tax at the FTA. If a double taxation agreement (DTA) is applicable, foreign private individuals and legal entities can also request the refund of anticipatory at the FTA.

  Domestic private individuals can request the refund of anticipatory tax at the competent cantonal tax administration.

Rulings/advance tax rulings

• What are the formal and material prerequisites for submitting a ruling query?

  Wherever possible, please submit ruling queries electronically to the email address [e-mail], or else send them by post to the address indicated below. If the query is submitted electronically, it is not necessary to additionally submit the request in paper form.

  Federal Tax Administration
  Main Division DAS
  Ruling DAS
  Eigerstrasse 65
  3003 Bern

  The formal and material requirements for a ruling request are stated in the Communication 011 of 29 April 2019.

• Is it possible to find out the name of the employee who is dealing with my ruling query and how long it will probably take to process it?

  You will receive an electronic confirmation as soon as your ruling request is registered.

  If further information is required or if there are any uncertainties, the person responsible for processing your request will contact you. Until then, there is no need for you to follow up the status of your request.

  If further documents are to be submitted in the meantime, they can be sent to the shared email address in the same way as the original ruling query. They will be forwarded internally without delay.

  The processing time may vary depending on the complexity of the case and the current workload.

Further information

• What is audited during tax audits that are conducted directly at the company? Does the company receive a report or confirmation after the audit if no taxable benefits/payments were discovered?

  The External Audit Division of the Main Division for Federal Direct Tax, Anticipatory Tax and Stamp Duty primarily checks whether any benefits in kind were provided. The company does not usually receive a report following the audit.
  

• What method does the FTA use to assess the market value of a company?

  The FTA assesses the value of a company for anticipatory tax and stamp duty purposes using the indirect goodwill valuation method (intrinsic value plus capitalised earnings divided by 2). The valuation method must be appropriate. Using the indirect goodwill valuation method to determine market value can yield appropriate results for SMEs. Otherwise, when determining an arm's length sales price, preference should be given to forward-looking methods (discounted cash flow); backward-looking methods such as the indirect goodwill method are not suitable for this purpose, or only under certain conditions (see Federal Supreme Court decision of 18.9.2013 / 2C_310/2013).

• When does a dividend fall due?

  The due date of a dividend is determined at the company's annual general meeting. If no dividend due date is defined, it is the date of the annual general meeting (see art. 21 para. 3 of the ATO).
  

• What has to be done in the case of a non-proportional distribution (asymmetric dividend)?

  If the dividend is not distributed according to the same proportion of the nominal share capital for all participants, this must be declared on the form and the identity of the beneficiaries must be disclosed on the second page, listing their name, exact address and share of the dividend.
  

• The liquidation of my company is completed. When will the company be deleted from the commercial register?

  After the VAT and DAS main divisions have verified the deletion, the FTA will forward its approval of the deletion directly to the commercial registry.

  In order for the FTA to be able to forward its approval of the deletion of your company to the relevant commercial registry, the DAS requires the following documents for verification:

  • annual financial statements for the last five financial years, including the closing balance sheet prepared by the liquidator;
  • declaration of any liquidation surplus using form 102;
  • documentation concerning the sale of stakes, securities, real estate or other major sales or private withdrawals of assets; and
  • contact details (telephone number and email address) for queries.

  Please send these documents by post to the following address:
  

  Federal Tax Administration
  Tax Collection Division (DVS-ER)
  Eigerstrasse 65
  3003 Berne

• What interest rate is applicable to business loans exceeding CHF 1 million from holders of a participation?

  To assess the appropriate interest rate for advances or loans from holders of participations or related third parties, the FTA uses the maximum interest rates published annually in its circular (in German).

  For business loans, including for larger loan amounts, the higher rate can be charged for the first CHF 1 million. The lower maximum rate is applied to the remaining amount (>CHF 1 million).
  

• What criteria are decisive in order for cash pooling interest rates to be accepted?

  Intragroup loans granted as part of a cash pooling arrangement or the interest paid on such loans is generally accepted by the FTA, provided that the taxpayer can demonstrate that they are not long-term loans. Therefore, it is generally not permitted to use cash pooling to finance certain transactions, particularly the acquisition of financial interests, fixed assets and dividend payments. In practice, certain indicators are used to assess whether a cash pooling transaction is justified. Based on these indicators and other characteristics, such as the purpose of the financing (e.g. dividend payment), the taxpayer must demonstrate that the transaction is actually justified within the framework of cash pooling in accordance with the arm's length principle. Otherwise, the transaction is qualified as a long-term loan. In this case, the interest rates specified in the FTA circulars apply.

  The interest rates on cash pool balances must stand up to a third-party comparison. As a general rule, the synergy effects from cash pooling must benefit all participants – once any costs of the cash pooling have been offset. When setting the level of remuneration, the functions and risks assumed by the participants and the cash pool leader must be taken into account.
  

• From what point on (delimitation) is an intragroup commercial debt considered to be a loan?

  Depending on the sector, merchandise deliveries are generally paid for within a period of 30, 60 or 90 days, for example. If the payment period is much longer than customary, the FTA considers the amount in question to be a loan, on which interest has to be paid according to the rates specified in the FTA circular (in German).

• Thin capitalisation: what is the applicable interest rate for the portion of the loan on which interest can be paid?

  The FTA circulars published annually set out the interest rates for advances and loans that are permissible for tax purposes; these are "safe-haven rules". If taxpayers apply these interest rates, they are generally not required to demonstrate compliance with the arm's length principle.
  

• Capital contribution principle: what are the options for forming reserves from capital contributions (CCR) as part of restructuring?

  Please refer to section 6, Recstructuring in general, of FTA circular Number 29c (in German), capital contribution principle, of 23 December 2022.

• Where can I find additional information on anticipatory tax (Swiss withholding tax)?

  As part of its activities, the DAS Main Division of the FTA drafts and publishes circulars, factsheets and guidelines. These documents explain the relevant legal provisions of the Anticipatory Tax Act and the implementing ordinances in more detail and serve to establish uniform practices.
  

  To the anticipatory tax circulars (in German).

Legal advice

• I am seeking legal advice on anticipatory tax (Swiss withholding tax). Who can provide this information?

  Among other things, the Federal Tax Administration's Main Division for Federal Direct Tax, Anticipatory Tax and Stamp Duty (DAS Main Division) is responsible for collecting and refunding anticipatory tax (to legal entities domiciled in Switzerland and to eligible legal entities and individuals domiciled abroad). As regards anticipatory tax refunds to individuals resident in Switzerland, the Federal Tax Administration oversees the competent cantonal tax administrations. With regard to the application of the law in specific cases involving individuals, please contact your cantonal tax administration.
  

  If you have legal questions, please contact the DAS Main Division using the anticipatory tax contact form. With regard to the application of the law in a specific case that is to be initiated by the FTA or is already being processed, the corresponding formal requirements and timeframes are to be observed.

Contact

Contact form

Phone numbers (German)
Collection Division
Refund Division
External Audit Division
Legal Division
Division Penal Affairs and Investigations

Federal Tax Administration FTA
Main Division DAS
Eigerstrasse 65
3003 Berne