Withholding tax in Switzerland primarily affects foreign employees holding a B, L, or G permit (cross-border workers). Your employer deducts the tax directly from your salary based on a standardized rate schedule that only accounts for basic criteria: family status, number of children, and canton of employment.
The problem? This rate schedule ignores many deductions you are entitled to: pillar 3a, actual professional expenses, LPP buybacks, alimony payments, education costs, or charitable donations. This is where the Subsequent Ordinary Assessment (TOU) comes in.
Since the reform of January 1, 2021, taxpayers subject to withholding tax whose gross income exceeds CHF 120,000 per year are automatically subject to a TOU. For others, the application is voluntary but must be filed by March 31 of the following year. Important: the TOU is now irrevocable -- once granted, you will be taxed under the ordinary system every year.
Our experts analyze your situation before any application to ensure the TOU is truly advantageous for you. In most cases, our clients recover between CHF 1,000 and CHF 5,000 per year. In Geneva, quasi-resident status offers additional advantages for cross-border workers whose 90% of worldwide income is taxed in Switzerland.
We handle the entire process: preliminary analysis, application preparation, optimization of the ordinary tax return, and follow-up with the tax authorities.