How does Quellensteuer (source tax) work for foreign workers on B permits?

Foreign nationals in Switzerland holding a B permit (annual residence permit) or L permit (short-term residence) who do not have permanent residence (C permit) pay Quellensteuer on their employment income. The employer withholds the tax monthly before paying the salary. The deduction covers federal, cantonal, and communal income tax as well as church tax if applicable.

The withholding rate is determined by the canton of residence and depends on gross salary, marital status, number of children, and religious affiliation. The FTA and cantonal authorities publish annual tariff tables. Employees should verify their employer is using the correct tariff code, as errors are common especially for expats with non-standard family situations.

Since 2021, a mandatory corrective ordinary assessment (nachträgliche ordentliche Veranlagung) applies to any Quellensteuer payer whose gross income in Switzerland exceeds CHF 120,000. These taxpayers must file a full tax return. Those below CHF 120,000 may still request a voluntary corrective assessment if they have additional deductions (Pillar 3a, mortgage interest, childcare) that would lower their tax below the amount withheld. The request deadline is typically March 31 of the following year.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.