Is a tax return worth it for withholding tax payers?
Tax at source (Quellensteuer) doesn't require any effort. But this could cost you thousands of francs every year.
Sometimes thousands of francs every year. The question isn't whether the switch works — it's whether it works for you specifically.
Know for sure before you commit
Our tax experts calculate your exact situation. You get a clear answer: switch or stay. No guessing, no risk of an unpleasant surprise.
In 10-20% of cases the switch leads to higher taxes — which is exactly why we calculate first.
Withholding tax vs. Tax return
| Factor | Withholding tax | Tax return |
|---|---|---|
| Child deduction | By tarif only | Deductible |
| Commute | Not applicable | Deductible |
| Education | Not applicable | Deductible |
| Medical expenses | Not applicable | Above threshold |
| Pillar 3a | Not deductible | Fully deductible |
| Mortgage interest | Not deductible | Fully deductible |
| Basis | Monthly income | Annual income |
| Reversible? | Switch possible | Permanent — no going back |
| Risk of higher taxes | No risk | Possible in 10–20% of cases |
Who can benefit?
Child deductions and childcare costs are only fully claimable via tax return. If you have children, the switch is often worth calculating.
Long commutes, public transport costs, meals and home office deductions don't apply under withholding tax — but they can generate a significant refund.
Pillar 3a contributions up to CHF 7'258 per year are fully deductible — but only if you file a tax return. You could have a pillar 3a, but can't deduct it if under withholding tax.
How much does it cost?
What our clients say
170+ clients have rated us 5 stars on Google.
„They took all the work off our hands. Always reachable, and they call back even on short notice. Once I submitted my documents, I didn't have to do anything else.“
„Very professional and competent advice. I'm very happy with the fast, uncomplicated service. I'd recommend them to any business owner.“
„Happy for years now! Friendly service, and my requests were always handled successfully. Switching to Taxright was one of the best decisions for my company.“
„I handed my taxes over to Taxright and within a few days everything was done. The tax return was filed directly with the tax office. Truly a 5-star service.“
„After I submitted all my documents digitally, I got a call letting me know everything had gone through. About 10 days later I received an email with the outcome. I'm absolutely thrilled!“
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What is withholding tax?
Withholding tax is deducted directly from your salary and is a flat-rate tax for residents without a C residence permit or Swiss passport.
It simplifies the tax process and allows for automatic tax settlement. With withholding tax, there is no annual tax return, which many see as an advantage. The tax burden is calculated based on monthly income.
What is retroactive ordinary assessment (tax return)?
With retroactive ordinary assessment, the entire income and assets of a taxpayer are accounted for in an annual tax return.
With a C residence permit or Swiss passport, the tax return is mandatory. Foreign employees are also automatically assessed retroactively, for example, if their annual gross income exceeds CHF 120'000 or if they have additional income such as dividends.
FAQ for withholding tax
Anyone who is subject to withholding tax in Switzerland and exceeds certain income limits can have it checked whether a change to ordinary assessment makes sense.
This also applies to people who have assets or significant deductions.
The switch can be particularly worthwhile if you have high professional expenses, alimony payments or assets that are not sufficiently taken into account in the context of withholding tax (switching to the tax return is mandatory anyway from a certain level of assets).
First, we use your personal financial data to check whether the change is worthwhile for you.
Then an application for a retrospective ordinary assessment (NOV) must be submitted to your canton of residence. This application must be submitted by 31.03.XX at the latest. You will then receive the document from the tax office with the submission code after a few weeks/months.
Once changed, this method remains in place for the respective tax year as well as for all subsequent years. It is therefore advisable to carry out a detailed analysis in advance in order to make the best decision.