Anticipatory tax (Verrechnungssteuer)
Withholding tax is a federal tax levied at source on dividends, interest and lottery winnings; it amounts to 35 per cent, is remitted by the debtor of the payment, and can be reclaimed by the recipient on correct declaration.
Definition
For a GmbH or AG it is a mandatory step when paying a dividend: the company transfers 65 per cent to the shareholder and 35 per cent to the Federal Tax Administration, with a declaration within thirty days of the due date.
The purpose is security: whoever declares the income in their tax return gets the tax back. Whoever does not declare it loses it — the deduction therefore acts as a control rather than a burden.
The numbers
- 35%
- rate on dividends and interest Art. 13 VStG
- 30 days
- deadline for declaration after the payment falls due Art. 38 VStG
Where to read it
What the software must be able to do
The distribution has to be representable as a three-part entry — dividend, payment, tax remitted — together with the documents for the declaration. A program without equity movements does not manage it.
Checked Aug 2026
More terms under Company taxes: Capital contribution principle Capital tax Direct federal tax Dividend Profit tax