Withholding tax
For employees without a permanent residence permit the employer deducts income tax directly from pay and remits it to the canton; the rate tables are cantonal and change every year.
Definition
What governs is the person’s canton of residence, or, where they live abroad, the canton of the workplace. The rate depends on marital status, number of children and the partner’s employment — a wrong rate does not correct itself; it is recharged later.
The employer is liable for the tax to be remitted and receives a collection commission for it. They are therefore not a messenger but responsible — even if the employee’s information was wrong.
Since the reform of withholding tax law the calculation rules are uniform, but rate tables and remittance deadlines remain cantonal. Businesses with staff in several cantons therefore calculate by one logic but with several tables.
Where to read it
- Federal Act on Direct Federal Taxation (SR 642.11)
- Tax Harmonisation Act (SR 642.14)
- Swiss Federal Tax Administration
What the software must be able to do
The rate tables must come with the program and be updated annually — not typed in by hand. Second check: does remittance go electronically via Swissdec to the cantons, or do you get forms to retype?
Checked Aug 2026
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