Understanding tax · Jurisdiction CH

Withholding tax in Switzerland (Verrechnungssteuer)

Withholding tax in Switzerland (Verrechnungssteuer) is a federal tax on domestic interest and dividends. It is not Austrian KESt and not German Abgeltungsteuer. Finmon files nothing.

In more detail

You often receive only 65% of a dividend or of interest; 35% goes to the ESTV. People living in Switzerland who properly declare income and wealth can usually reclaim the tax or offset it against cantonal tax. The tax is meant to deter evasion, not to burden residents permanently. Entitlement and deadlines sit in the VStG, not in Finmon.

Background

Without a declaration the refund claim is generally forfeited; if you forgot something by negligence, you can declare it later under certain conditions. People abroad follow any double-tax treaty. Finmon does not read a DTA. Group reporting procedures and special cases stay out of scope. Dropping in German final withholding or Austrian finality would be wrong. Finmon does not apply 35% to your portfolio.

An example

A Swiss share pays CHF 100 of dividend; CHF 35 of Verrechnungssteuer is withheld. Educational point: the deduction is federal law. Whether and how you get it back is a filing question with ESTV/the canton, not inside Finmon.

A common misconception

Verrechnungssteuer is German Abgeltungsteuer on Swiss accounts.

It is a Swiss federal withholding tax with a refund after declaration. Finmon files nothing.

Source: ESTV · Verrechnungssteuer. Last reviewed: 2026-10-26. Editorially reviewed on 2026-10-26. Next review 2027-10-26. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.