​ ​​​Quellensteuer / Impôt à la source

What is Quellensteuer / Impôt à la source?

Quellensteuer (in German) or Impôt à la source (in French) is the withholding tax applied in Switzerland. It refers to the tax deducted directly at the source of income, meaning it is withheld by the payer before the recipient receives their income.

Key Features:

• Automatically deducted from salaries and certain types of income
• Primarily affects foreign workers without a Swiss C permit
• Also applies to investment income such as dividends, interest, and royalties paid to non-residents
• Tax rates vary by canton, marital status, number of dependents, and total income

Application:

• Foreign employees working in Switzerland without a C permit

• Dividends, interest, royalties paid to individuals or companies outside Switzerland

• Performance fees paid to foreign artists, athletes, and guest speakers for activities in Switzerland

Why It Matters?

Quellensteuer has significant implications for expats, international investors, and foreign businesses. Proper classification and compliance can impact tax refunds, double taxation agreements, and overall tax liability.

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