The withholding tax is not taken from the taxpayer, but rather directly from the employer. The tax is deducted from the wage payable by the employer and transferred directly to the tax office. As an employer, you are obligated to report individuals subject to withholding tax to the tax authorities and to settle this tax with them.
If the simplified payment procedure is selected, the employed individual is only subject to the withholding tax applicable for this procedure and is not subject to further taxation of this income.
Foreign employees domiciled or residing in Switzerland must be registered for withholding tax if:
- Tax is not settled with the compensation fund office using the simplified payment procedure
- The employee is a foreigner
- The employee's tax domicile is in Switzerland or the employee stays and works in Switzerland for at least 30 days
- The employee does not hold a "C" residence permit
- The employee does not live in a legally and effectively intact marriage or registered partnership with a person who holds Swiss citizenship or the "C" residence permit
If point 3 or 4 does not apply to the employee, tax is deducted using the ordinary assessment procedure.