Reclaiming withholding tax: step by step
On dividends and interest, the federal government withholds 35 percent. The money isn't gone, but you have to claim it. Here's how, and where it goes wrong.
How much is it for you? Enter your portfolio in the calculator and see the amount you can reclaim.What withholding tax is
Withholding tax is a kind of deposit. Swiss companies and banks deduct it directly before a dividend or interest payment reaches you. The rate is 35 percent. On a dividend of 1,000 francs, only 650 francs land in your account.
The point of it: the federal government wants to make sure no one hides capital income. Anyone who declares it correctly gets the 35 percent back. Anyone who doesn't loses it for good.
Who gets the money back
Two conditions apply for private individuals. You were resident in Switzerland at the time of payment, and you were the beneficial owner of the security or account, meaning it genuinely belonged to you. In addition, the income must appear in your tax return.
The canton responsible is the one where you lived on 31 December of the payment year. For children under 18, the parents generally declare it, since the wealth and income are attributed to them.
Reclaiming it in five steps
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Get the tax statement from your bank
Banks and brokers issue a tax statement every year. It shows the gross income, the withholding tax deducted, and the value of your holdings as of 31 December.
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List all accounts and custody accounts
Enter every bank account and every custody account in the securities and assets register, including small savings accounts and accounts with several providers. If you forget an account, you lose the withholding tax on it.
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Declare gross, not net
Enter the income before tax was deducted, i.e. 1,000 rather than 650 francs. Most cantonal software then works out the withholding-tax claim itself.
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Declare wealth as of 31 December
Besides the income, the market value of the holdings also belongs in the register. Only then does the declaration add up, with no follow-up questions.
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File your tax return on time
Declaring it automatically files the claim. The canton usually offsets the amount against your tax bill. If the bill is smaller than the credit, you get the difference paid out.
An example
The dividend itself counts as income and is taxed. The withholding tax, on the other hand, you get back in full.
The deadline many people miss
The claim lapses three years after the end of the calendar year in which the income arose. Dividends from 2023 can therefore only be reclaimed until the end of 2026.
If you didn't declare income in earlier years, it's worth acting immediately. Declaring retroactively is possible, but only within the deadline. At the same time: income that was never taxed at all is a separate issue. If you're unsure, a fiduciary or your cantonal tax authority can help.
For details on what's still possible after the deadline or with forgotten income, see the article Deadline and forfeiture.
Common mistakes
Entering only the net amount
Anyone who enters 650 instead of 1,000 francs reclaims only part of the money and declares too little income.
Not listing securities under wealth
Declaring the income but not entering the holding under wealth leads to follow-up questions from the tax authority.
Assuming the bank does it automatically
The bank deducts the tax but doesn't reclaim it for you. That always runs through your tax return.
Treating foreign holdings the same way
Foreign stocks are not subject to Swiss withholding tax, but to a withholding tax of the country of origin. Different rules and sometimes different forms apply there.
Frequently asked questions
Do I get the tax back automatically?
No. You have to declare the income yourself in your tax return. Only then can the canton offset or pay out the amount.
Does this also apply to interest on a savings account?
Yes. Withholding tax is also deducted on interest from Swiss banks. The bank only deducts it once interest on an account exceeds 200 francs per year, provided it's settled just once a year. You must declare the interest for tax purposes even below that threshold. All accounts belong in the securities and assets register.
How long does the repayment take?
That depends on the canton and the timing of assessment. Usually the amount is offset against your tax bill once your return has been processed.
I haven't declared anything this year yet. What now?
Fill in your tax return with the gross income. If you're missing documents, request the tax statement from your bank; this is often available directly in e-banking.
Further reading from the authorities: ch.ch on withholding tax and the Federal Tax Administration.