A draft that would completely revise the federal withholding tax law (ordinance) has been submitted to the Swiss national parliament for consultation. The draft version would redefine the requirements for non-resident taxpayers subject to Swiss source tax withholdings on their Swiss employment income to benefit from the possibility of filing an “ordinary” tax return in Switzerland.
It is expected that the changes would be effective in 2020.
The Swiss federal parliament on 16 December 2016 agreed to a complete revision of the federal withholding tax ordinance. The reform aims to reduce possible inequalities between foreigners subject to Swiss tax withholding and Swiss citizens or C-Permit holders who are not subject to the same tax regime.
Swiss tax residents as well as “quasi-tax residents”—defined as persons whose main residence is outside of Switzerland, but who earn the majority of their worldwide employment income in Switzerland—subject to Swiss source tax withholding could file a subsequent ordinary Swiss tax return. For persons subject to Swiss source tax withholding and who reside in Switzerland, filing a subsequent ordinary tax return has always been mandatory if they earned an annual gross income of CHF 120,000 or more from "dependent employment."
Read a September 2017 blog item posted by the KPMG member firm in Switzerland
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