The cantonal tax office is responsible for assessing the cantonal, communal and the federal income taxes. The cantonal and communal tax rates vary between cantons and cities.
Switzerland levies taxes on income and assets. Canton St. Gallen and Canton Graubünden offer tax calculators on their webpages to calculate the estimated tax burden. Moreover, differences in taxation between different cities can be calculated.
You will receive more detailed information from a personal tax consultant. The integration agreement will state whether you are eligible for tax consulting in Switzerland.
A voucher can be obtained via the Benefit-Portal of your employer. The voucher gives you access to one hour of tax consulting with a tax advisor selected by Hilti. Tax consulting in excess of 1 hour will be billed to your directly.
Employees residing in Switzerland are taxable in Switzerland on their worldwide income. Swiss nationals and foreigners with a residence permit (C) pay their income taxes once a year based on a preliminary tax assessment (more payment options are possible and can be agreed with the local tax office). The final assessment will take place at the end of the tax year. Foreigners without a residence permit (C) will be taxed at source. The Swiss employer will withhold taxes on the employment income on a monthly basis. The Swiss employer is obliged to directly withhold at source and transfer the withholding taxes to the Swiss tax authorities.
Individual deductions (e.g. Säule 3a, interest rates on loans…) will not be taken into consideration when determining the withholding tax rate. The individual has to file an application with the local tax office for the latter to take into account individual deductions. The application has to be filed until March of the following year. The application form can be obtained from the cantonal tax authorities. The employee has to file an annual tax return to claim individual deductions.
Employees who are subject to withholding at source and their income exceeds CHF 120’000 have to file an annual tax return in Switzerland. Employees who are subject to withholding at source will be approached by the cantonal tax office on a yearly basis. These individuals have to declare their other income and assets (e.g. bank accounts, financial assets, property…). The tax return form will be sent via mail or can be accessed and filed electronically.
The Swiss employer will withhold a reduced rate of 4.5% on your employment income, if you are residing in Germany (based on the double tax treaty concluded between Germany and Switzerland).
Commuters from Germany have to present a tax residence certificate signed by the Germany tax authorities to their Swiss employer (Form Gre-1 a). The employer will file the form Gre-1 a with the tax office in St. Gallen. If you change your German residence you have to file Gre-2. If you do not return to your main Germany residence on more than 60 days during a tax year you will lose your commuter status (for tax purposes only).
Commuters from Austria will be subject to withholding tax on their Swiss employment income. The Swiss employer (HIBAG) will deduct withholding tax based on the withholding tax table of the Canton St. Gallen. The withholding tax will be determindes based on income level and civil status.
The withholding tax will be paid to the responsible tax office of the employer. Based on the applicable double tax treaty the commuter will receive a tax credit for the withholding taxes levied in Switzerland.
We recommend that you contact a local tax advisor.
Employees residing in Switzerland are taxable in Switzerland on their worldwide income. Based on the double tax treaty concluded with Liechtenstein no withholding tax needs to be deducted from Liechtenstein employment income. Swiss commuters need to provide the employer with a tax residence certificate of the Swiss tax office. Employees will lose their commuter status (for tax purposes), if they do not return to their Swiss residence on more than 45 days due to business reasons.
Swiss residents pay their income taxes once a year based on a preliminary tax assessment. The final assessment will take place at the end of the tax year (more payment options are possible and can be agreed with the local tax office). Swiss residents have to file an income tax return in Switzerland by March 31, following the end of the tax year.
In addition to cantonal and communal taxes there is the federal income tax and the church tax. The due date for all tax types are stated on the tax assessment / tax invoice.
The Liechtenstein employer (HAG) has to withhold tax on the employment income. The withholding tax rate is based on the salary tax table published by the Liechtenstein tax authorities. Employees living in Switzerland during the week who have their main residence outside of Switzerland (e.g. in Germany) are subject to standard withholding tax rates in Liechtenstein.
Employees residing in Germany will receive a tax credit in Germany for the Liechtenstein taxes paid.
Employees will remain taxable on their worldwide income in their respective country of main residence (center of vital interest). The avoidance of double taxation in any other country of residence will depend on whether or not a double tax treaty is in place with Liechtenstein.
All employees who do not provide a Swiss tax residence certificate to HAG will be subject to withholding tax at source in Liechtenstein. An employee can only be classified as a Swiss commuter by the employer, if he provides a Swiss tax residence certificate.
We recommend that you contact a local tax advisor.
In accordance with your integration agreement, you are entitled to tax advice.
Every year you have the opportunity, through the Hilti benefit portal, to take advantage of a voucher for a tax consultation with tax consultants commissioned by Hilti. Additional hours will be charged to you directly by the tax consultant.