Taxes

The withholding tax is a security tax in Switzerland that amounts to 35% on capital income such as interest and dividends to prevent tax evasion. Swiss taxpayers can reclaim this tax by declaring it in their tax return.

Many dream of winning the lottery, which, however, rarely becomes reality and brings with it complex tax rules. Depending on the canton, taxes on winnings vary, some are exempt from withholding tax.

In Switzerland, the federal government, cantons, and municipalities levy standard taxes such as income and profit tax, as well as special taxes such as dog tax and amusement tax. Additional specific charges include the fire brigade replacement levy and water royalties for hydroelectric power stations.

The FDP Council of States member Andrea Caroni has called for a simplification of the value-added tax law to enable relief during the Corona crisis. He proposes a uniform value-added tax rate of about 7% to simplify the system.

The "Zurich Tax Burden Monitor" shows that Zurich has a below-average income tax for the middle class, but has a high tax burden for companies. In an inter-cantonal comparison, Zurich has a low position in the taxation of corporations.

Tax deadlines vary depending on the canton; an extension is possible. Specialists provide an overview of deadlines and assistance with tax returns.

More and more cantons are offering the option to fill out and submit tax returns online; a process that avoids paper chaos and allows access to data around the clock. For the online tax return, one needs access to the cantonal tax software and all relevant documents in electronic form.

The notional rental value, a fictitious rental amount, must be taxed as income by homeowners in Switzerland. Mortgage interest and maintenance costs are tax deductible, but not value-enhancing investments.

Bitcoin breaks through the $50,000 mark; crypto gains are often tax-free, except in the case of commercial trading or mining. There is a tax liability for crypto assets.