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Withholding Tax in Switzerland taxes capital gains, lottery winnings, life annuities, pensions and insurance benefits. Do you want to find out about Withholding Tax, register or claim back or have your Withholding Tax refunded? Here you will find forms, interest rates, information on the declaration obligation, all circulars, circulars and instructions on withholding tax or information on foreign Withholding Taxes sorted by country.
Questions & answers about the Withholding Tax
Claim to refund of Withholding Tax
Your bank or your representative submitted the application for a withholding tax refund. Please contact your bank or representative.
You can submit your application for a withholding 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.
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.
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).
In general, the claim for refund of withholding tax expires, subject to the exception stated in Article 32 paragraph 2 of the WTA, if the application is not submitted within three years after the end of the calendar year in which the taxable benefit becomes due.
Domestic legal entities request the refund of withholding tax at the FTA. If a double taxation agreement (DTA) is applicable, foreign private individuals and legal entities can also request the refund of withholding at the FTA.
Domestic private individuals can request the refund of withholding tax at the competent cantonal tax administration.
Rulings
Queries on advance tax rulings can be sent by email (preferred method) to ruling.dvs@estv.admin.ch or by post to the address below. If the query is submitted electronically, it is not necessary to additionally submit the query in paper form.
Federal Tax Administration
DAS Main Division
DAS Rulings
Eigerstrasse 65
3003 Bern
The formal and material requirements for a ruling query are stipulated in the Communication 011 of 29 April 2019.
As soon as we have registered your ruling query, you will receive an electronic confirmation.
If any further information is required or if something needs to be clarified, the official dealing with your query will contact you. You do not need to contact us again before then.
Processing times vary, depending on the complexity of the query and our current workload.
Further information
The subdivision External Audit of the DAS Main Division mainly examines whether payments in kind have to be determined. The company does not normally receive a report following the audit.
The FTA assesses the value of a company for withholding tax purposes using the indirect goodwill valuation method (intrinsic value plus capitalised earnings divided by 2). The valuation method must be appropriate. The indirect goodwill valuation method in order to determine the market value can yield appropriate results for SMEs. Otherwise, when determining the arm's length sales price, preference should be given to forward-looking methods (discounted cash flow, multiples method); backward-looking methods such as the indirect goodwill method are of limited or no suitability for this purpose.
The tax free allowance of CHF 10 million for restructuring set out in Article 6 paragraph 1 letter k of the StA may be claimed only if the grants of participation holders can be offset under commercial law with losses/losses carried forward. In this case, it is not permitted to build capital contribution reserves.
According to civil law, the due date of a dividend is set at the company's general assembly. At this time, the corresponding withholding tax claim arises, which is due 30 days later. If the company’s general assembly did not set a date for the payment of the dividend, the due date is the date of the general assembly.
If the amounts paid out are not the same for each share, the payment is not made in relation to the participation quota. If the dividend is not paid out in relation to the participation quota, this must be stated in the articles of incorporation.
After the VAT and DAS Main Divisions have checked the request for deletion, the FTA will forward its approval of the deletion directly to the respective commercial registry.
To assess the appropriate interest rate on advances or loans of participation holders or related third parties, the FTA uses the maximum interest rates published in its circular (in german).
For business loans, including for larger loan amounts, the higher interest rate can be charged for the first CHF 1 million. For the remaining amount (>CHF 1 million) the lower maximum interest rate is applied.
Intragroup loans granted as part of cash pooling or interest paid on such loans are generally accepted by the FTA if the taxpayer can demonstrate that they are not long-term loans. Thus, the use of cash pooling to finance certain transactions is generally not acceptable, particularly for acquiring participations, assets and dividend payments. In practice, certain ratios are used as a benchmark for assessing whether a cash pooling transaction is justified. Based on these ratios, and other characteristics – such as the financing purpose (e.g. dividend payment) – the taxpayer must demonstrate that the transaction is actually justified within the context of a cash pool, according to the arm's length principle. Otherwise, the transaction will be qualified as a long-term loan. When the transaction qualifies as a long-term loan, the interest rates specified in the FTA's circulars are applied.
Interest rates on cash pool balances must stand up to a third-party comparison. As a general rule, synergy effects from cash pooling must benefit all participants – once 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.
Depending on the sector, payment for a commercial delivery generally takes place within 30, 60 or 90 days. When the payment period has been significantly exceeded, the FTA deems that the amount in question equates to a loan, which must be remunerated at the rates specified in the circulars published annually by the FTA.
The circulars published annually by the FTA set the interest rates admissible under tax law for advances and loans; they constitute as "safe haven" rules. When applying these rates, the taxpayer generally does not have to demonstrate that they comply with the arm's length principle.
As regards restructuring, please see chapter 6, General, in the FTA's Circular 29b, Capital contribution principle, of 23 December 2019.
As part of its activities, the DAS Main Division draws up and publishes circulars, factsheets and guidelines. These elaborate the pertinent federal legislative framework with respect to withholding tax and – where necessary – the implementing ordinances, and serve to establish consistent practices.
To the Circulars.
Legal advice
Among other things, the DAS Main Division is responsible for collecting and refunding withholding tax (to legal entities domiciled in Switzerland and to eligible claimants abroad). As regards withholding tax refunds to private individuals resident in Switzerland, the FTA oversees the competent cantonal tax administrations. As regards the application of the law concerning private individuals resident in Switzerland, please contact your cantonal tax administration.
If you have legal questions in the area of responsibility of the FTA, please contact the DAS Main Division using the withholding tax contact form. As regards the application of the law in a specific case, which is already pending, please note the corresponding formal requirements and deadlines.
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Contact
Phone numbers (German)
Collection Division
Refund Division
External Audit Division
Legal Division
Division Penal Affairs and Investigations
from Monday to Friday
08.30 - 11.30 / 13.30 - 16.30
Federal Tax Administration FTA
Main Division DAS
Eigerstrasse 65
3003 Berne
Last modification 19.11.2021