One of the most asked questions I get from my audience is: “Do I have to submit a tax return in Switzerland?” As most of the time when it comes to questions about taxes the answer is: “It depends…”. It depends on two factors. One is your personal situation. The other one is your income. At the end of this article, you will know whether you must file a tax return in Switzerland or not.

In this article we cover the question in which case a person in Switzerland has a tax return fling obligation and when not. Important to say is that first, the person needs to be tax resident in Switzerland. A non-resident in Switzerland cannot file a tax return in Switzerland. The following explanations are always made under the assumption, that the individual is a tax resident in Switzerland.

Swiss citizen, C permit holder

A Swiss person or a person holing a C permit must always file a tax return if they are over 18 years old. Theoretically, a younger person can also file a tax return in case they have substantial income or wealth. The tax year in Switzerland is from January 1 to December 31. The filing of the tax return depends on the canton of residency on December 31. It is due in most cantons until March 31 of the following year. However, the filing deadline can be extended. The request for extension needs to be filed before the deadline has been expired.

Exceeding annual gross salary of CHF 120’000

If you do not have a Swiss passport or holding a C permit in Switzerland withholding tax will be deducted directly from your employment income. In general, this is the final tax liability in Switzerland unless your annual gross employment income is more than CHF 120’000. In this case, you also have to file a tax return in Switzerland. The reason for this is that over this threshold, the withholding tax is no longer very accurate. Therefore, a so-called subsequent assessment is due. “Subsequent” because the withholding tax is still collected by the employer, but it is no longer the final tax liability. The final tax liability will be calculated based on the tax return. The already paid withholding tax will be considered as a pre-payment towards the final tax liability.

In case you arrive in Switzerland during the year, please consider that your part year income will be annualized to a 12-month period (i.e. you arrive on August 1 in Switzerland from abroad, your gross salary for the period August to December is CHF 60’000, your annualized income is CHF 144’000 and you are obliged to file a tax return for the year of arrival).

Annual gross salary below CHF 120’000

Even though your annual gross income is below CHF 120’000 you can file a tax return as well. However, this needs to be requested by the individual until March 31 of the following year. Filing a voluntary tax return can be an advantage in case there are additional deductions to be claimed like 2^nd (pension fund) or 3^rd pillar contributions, additional education costs, alimony payments, etc. But be aware that if you once have requested to file a tax return on a voluntary basis, it becomes mandatory to file also for the following years. I recommend calculating upfront if a voluntary filing is worthwhile, before requesting it.

Married couples

Married couples and couples in a registered partnership always have to file a joint tax return. If one spouse fulfills the requirement to file a tax return it applies to the couple and the have to file a joint tax return together.