Börsenlexikon: Withholding tax

Withholding tax is a tax on income that is deducted directly at source and paid to the competent tax office. Swiss nationals pay their taxes at the end of the year; foreign workers (without a C permit) pay the fiscal contribution each month through their employer directly at source as a so-called withholding tax. The employer pays this tax directly to the tax authorities in Switzerland. This amount varies depending on the canton and can change annually.