What is Verrechnungssteuer and how do I reclaim it on Swiss dividends?

Verrechnungssteuer is a 35% withholding tax deducted at source on Swiss dividends, bond interest, and certain lottery winnings. If you receive a CHF 1,000 dividend from a Swiss company, you receive only CHF 650 — CHF 350 is remitted to the FTA.

Swiss residents can reclaim the full 35% by declaring the income on their tax return. The withheld amount is credited against your income tax liability; if excess, it is refunded. The key requirement is that you declare the dividend income in full — failure to declare means you forfeit the refund.

Foreign residents and companies can claim partial refunds under double tax treaties. The standard treaty rate for dividends is often 15% (the treaty partner retains the right to tax the remaining 20%). Application forms are available from the FTA. Treaty relief must be applied for actively — it is not automatic.

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