TAX

Improvements to the notification procedure for Swiss withholding taxes

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As per January 1, 2023, some improvements to the notification procedure for Swiss withholding taxes will enter into force.

In general, dividend distributions are subject to Swiss withholding taxes of 35%. For dividend payments a reduced or zero percent Swiss withholding tax rate respectively the notification procedure may be applied (i.e. notification instead of payment).

Newly, an approval from the Swiss federal tax authorities to apply the notification procedure for international dividend payments (from a Swiss company to a foreign parent company) will be valid for five years (currently three years).

For domestic dividend payments (from a Swiss company to a Swiss parent company) the notification procedure may be applied for participations of 10% or more (currently 20% or more).