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Taxes & Tax Declaration in Switzerland

The basics: The Swiss tax system

Switzerland has a federal tax system structured along three levels:

  • Federal tax – Uniform taxation of all residents of Switzerland
  • Cantonal tax – Every canton establishes its own tax rates, which can result in significant differences
  • Communal tax – Every community levies its own additional taxes

The overall tax burden varies depending on place of residence, income, and wealth. This is why a targeted approach is sensible to benefit from tax advantages.

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Who is subject to withholding tax?

  • Foreign individuals with no residence permit (C permit)
  • Gainfully employed persons domiciled in Switzerland whose income is taxed directly by their employer
  • Cross-border commuters, depending on the agreement in place with their country of origin

Withholding tax is deducted directly from one’s salary and replaces the regular tax declaration. If you would like to claim additional deductions, you may request a correction of your withholding tax.

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Who needs to file a regular tax declaration?

  • Swiss citizens and residents with a C permit must file an annual tax declaration
  • Income & wealth must be stated and taxed correctly
  • Deductions for insurance fees, work-related expenses, and contributions towards pillar 3a provision are permitted

Persons who are subject to withholding tax (no C permit) generally do not need to file a tax declaration. However, they may request a withholding tax adjustment. This is particularly advisable in the event of high work-related expenses, pillar 3a contributions, alimony payments, or excess housing costs. An adjustment must be requested with the responsible tax office no later than March 31 of the following year.

How to proceed

1

Gain clarity over your tax duty

  • Check whether you are subject to withholding tax or regular tax

  • Request potential adjustment of withholding tax

2

Prepare tax declaration

  • Gather proof of income, bank statements, and insurance policies

  • Check possible deductions and ways of optimization (pillar 3a, costs of commuting, insurances)

3

File tax declaration on time

  • Mind the different deadlines per canton (mostly end-March)

  • Request deadline extension if needed

4

Tax optimization & refunds

  • Benefit from tax advantages through targeted deductions

  • Request a refund of anticipatory tax if possible

Videos on the topic of tax declaration

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Tax declaration: smzh online tool

Every year brings with it a new tax report – as well as the associated paperwork, uncertainties, and time requirement. To minimize the effort, you may use the tax declaration service of smzh: Our experts fill out your tax report professionally, optimize your deductions, and ensure on-time filing. Personal advice is included, and it can all happen easily online.

(in German)

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Tax declaration: Possible deductions

Tax reports must be filed by March 31 in most cantons, and doing so provides an opportunity to reduce one’s tax burden through targeted deductions. Whoever wants to save time and avoid any hassle can rely on the comprehensive tax declaration service of smzh. Our experts fill out your tax report professionally, optimize your deductions, and ensure on-time filing. Personal advice is included – simply upload your documents online and leave the rest to smzh.

(in German)

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smzh for You

Your experts for tax advice & optimization

  • Individual tax advice & optimization
  • Calculating your tax burden & identifying possible deductions
  • Support in terms of tax declaration & deductions
  • On-time filing & contact with tax office

smzh ag provides professional support in all tax matters and in completing your tax report.

We handle questions about taxes & tax reports on a daily basis. These are the most frequently asked ones:

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No, you don’t. But you may request an adjustment of your withholding tax if you have deductions that should be considered.

The effective tax burden depends on canton of residence, income, wealth, and individual deductions.

Yes, you can do so through targeted deductions for pillar 3a contributions, insurance premiums, costs related to commuting and working from home.

The deadline usually is end of March, but it can be extended.

You risk reminder fees or a tax assessment by the authorities, which is usually not favorable.