Subsequent regular assessment

In Switzerland, individuals subject to withholding tax do not have to file a tax return. However, there are exceptions to this rule that can vary from canton to canton. Certain individuals subject to withholding tax must submit a tax return despite being taxed at source. This is known as a subsequent ordinary assessment.

What is a subsequent ordinary assessment?

Foreign nationals who do not have a C permit are generally subject to withholding tax. This means that taxes are deducted directly from their salary. Therefore, there is no need to complete a tax return.

However, those who are subsequently assessed must submit a regular tax return despite being subject to withholding tax.

Who is subsequently assessed?

Since the withholding tax reform in 2021, a distinction is made between mandatory and voluntary subsequent ordinary assessments. In the case of a mandatory assessment, an individual has a gross annual income of CHF 120,000 or more, or other non-withholding taxable income or assets (considering cantonal differences!). These individuals are required to fill out a tax return. However, following the reform, it is also possible to voluntarily submit a tax return.

Many taxpayers can benefit financially from this option. Professional expenses, medical expenses, and contributions to the third pillar can thus be deducted for tax purposes. This may lead to a partial refund of the tax liability.

It should be noted that taxpayers who are once registered as ordinary are obligated to submit a tax return every year.

Applying for subsequent ordinary assessment

To be assessed subsequently, an application must be submitted to the cantonal tax administration of the residence canton by March 31 of the following year. The application can usually be submitted online.

If an individual subject to withholding tax exceeds the thresholds for income or assets and fails to report this to the tax office, this can lead to tax criminal law consequences.