Swiss withholding tax, what expats need to know, NOV, 120k threshold, March 31 deadline

Withholding tax in Switzerland mainly applies to foreign employees who do not have a C permit. This means: If you work with a B permit or L permit, the tax is deducted directly from your salary before you receive it.

The system is designed so that your employer calculates the tax and transfers it to the tax office. You can see the deduction on your payslip.

You typically pay withholding tax if you:

• Have a B or L permit
• Live and work in Switzerland
• Have not yet received a C permit

You do not pay withholding tax if you:

• Are a Swiss citizen
• Have a C permit (settlement permit)
• Already go through ordinary tax assessment

The switch from withholding tax to regular tax filing happens automatically once you receive your C permit. Until then: Your employer deducts the tax, and you can request a subsequent ordinary assessment under certain conditions, called NOV.

The most common withholding tax mistakes happen on the payslip. Here is a checklist with 10 points you should verify.

10 Point Payslip Checklist:

1. Tariff

Is the tariff code correct? A for single, B for married with one income, C for married with two incomes. Children add a number.

1. Marital status

Is your current marital status recorded correctly? Changes from marriage or divorce must be reported to your employer.

1. Child deductions

Are your children registered? Each child increases the deduction and lowers withholding tax.

1. Residence municipality

The municipality determines the tax rate. A wrong municipality can lead to incorrect deductions.

1. Church tax flag

Are you a member of a church? If not, the flag should be deactivated.

1. Gross salary base

Is the gross salary correct? Check that all salary components are properly recorded.

1. Bonus and 13th month salary

Are these amounts taxed correctly? Sometimes they are calculated incorrectly.

1. Withholding tax percent and amount

Does the percentage match your tariff? The amount should be traceable.

1. Rate determining income

If shown: Is the total income correct, including partner income?

1. Correction process

Do you know how to report errors? Ask your payroll department about the procedure.

If you find errors, report them immediately in writing to your payroll department.

NOV stands for subsequent ordinary assessment. This means: You file a regular tax return even though you are subject to withholding tax.

This can make sense if you want to claim deductions that are not considered in withholding tax. But be careful: A NOV can also carry risks.

Decision Logic with 6 Questions:

Question 1: Do you have high deductions like commuting costs, education or pillar 3a?

Yes: NOV might be worth it. No: Probably not.

Question 2: Do you or your partner have side income?

Yes: NOV may become mandatory. No: Not an issue.

Question 3: Do you have assets or capital gains?

Yes: NOV may be necessary. No: No impact.

Question 4: Do you want to stay on withholding tax for the next years?

Yes: Be careful, a NOV can become mandatory in future. No: Not a problem.

Question 5: Do you know your tax situation well?

Yes: You can estimate if NOV is worth it. No: Get advice.

Question 6: Do you have time for a full tax return?

Yes: NOV is doable. No: Think carefully.

If you are unsure on several questions, a short conversation with a tax advisor may be useful. This is not legal advice, but a clear orientation.

Here are three copy paste templates you can use directly.

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Template 1: To Payroll, Tariff and Child Correction

Subject: Withholding tax tariff correction

Dear team,

on my payslip from [month/year] the withholding tax tariff is recorded as [current tariff]. After checking, the correct tariff should be [correct tariff].

Reason: [short explanation, e.g. marital status change, children not registered]

Please correct the tariff from the next pay period and let me know if a retroactive correction is possible.

Best regards

[Your Name]

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Template 2: To Tax Office, Question about NOV Submission

Subject: Question about subsequent ordinary assessment (NOV)

Dear Sir or Madam,

I am subject to withholding tax and am checking whether a subsequent ordinary assessment for the tax year [year] makes sense for me.

Can you let me know which documents I need to submit and whether I can fill out the form online?

Best regards

[Your Name]

[Address]

[Phone]

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Template 3: Follow up if no response

Subject: Follow up on my inquiry from [date]

Dear team,

I am referring to my inquiry from [date] regarding [topic, e.g. tariff correction or NOV submission].

Since I have not received a response, I kindly ask for a short confirmation or update on the current status.

Best regards

[Your Name]

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All templates are also included in the withholding tax quick check pack as PDF.

Aarau

In the canton of Aargau, the Aargau tax office is responsible for withholding tax. The NOV can be requested online via the cantonal tax portal. Processing is usually straightforward as long as all documents are complete.

Tip: If you live and work in Aarau, check that your municipality is correctly recorded on your payslip. The tax rate varies by municipality.

Wohlen

Wohlen also belongs to the canton of Aargau, so the same rules apply. The advantage of smaller municipalities: The administration is often more directly accessible, and questions are answered quickly.

Tip: If you move to Wohlen or already live there, report your new address to your employer immediately. This affects the tax rate.

St. Gallen

The canton of St. Gallen has its own withholding tax tariffs. The current tariffs are published on the tax office website. NOV requests can also be submitted online.

Tip: St. Gallen has many expats and students. The tax office is used to answering questions. Use the hotline if you are unsure.

At Bovita, all rooms are transparently priced, and we help you find your way quickly in your new city. Whether Aarau, Wohlen or St. Gallen.