Swiss withholding tax

Swiss withholding tax, also known as Swiss anticipatory tax, is a federal tax that is levied directly at source. It is generally 35 percent and applies to Swiss investment income, such as interest from accounts or bonds, dividends, and certain lottery and gambling winnings. Reduced tax rates apply to certain insurance benefits.

Withholding tax is intended to prevent tax evasion. Anyone who correctly reports their income (and the underlying assets) on their tax return will receive a full refund of the withholding tax withheld. For residents of Switzerland, withholding tax is therefore merely an advance payment. Depending on the double taxation agreement, foreign recipients may only be able to reclaim part of it or none at all.

You can find more information on the topic of withholding tax and how to reclaim it in this blog.