Federal Act of 13 October 1965 on Withholding Tax (WTA) (VSTG)

The Confederation levies a withholding tax on income derived from movable capital, on winnings from games of chance as defined by the Federal Act on Games of Chance of 29 September 2017 (GCA), on winnings from games of skill or lotteries intended to promote sales that are not subject to the GCA according to Art. 1, para. 2, let. d and e, of that Act, as well as on insurance benefits; in cases provided for by law, the declaration of the taxable benefit replaces the payment of the tax.

The Confederation, or the canton on behalf of the Confederation, refunds the withholding tax, in accordance with this Act, to the beneficiary of the benefit reduced by the tax.

The cantonal share of the net annual proceeds from the withholding tax amounts to 10%.

It is distributed among the cantons at the beginning of the following year. Distribution is based on the resident population of each canton, using the latest available results from the federal population census.

The Federal Council determines the application procedures after consulting the cantonal governments.

Items to which this Act subjects to withholding tax or declares exempt are exempt from any burden constituted by cantonal and communal taxes of the same kind; the Federal Supreme Court has exclusive jurisdiction over disputes relating to this provision (Art. 120 of the Federal Supreme Court Act of 17 June 2005).

The use of documents in a procedure based on this Act cannot result in the obligation to pay cantonal stamp duties.

The anticipatory tax on income from movable capital applies to interest, annuities, profit participations, and all other returns: a. from bonds issued by a person domiciled in Switzerland, mortgage certificates, and annuity letters issued in series, as well as assets recorded in the debt register; b. from shares, units of limited liability companies, and cooperative societies, profit participation certificates of cooperative banks, participation or benefit certificates, issued by a person domiciled in Switzerland; c. from units of a collective investment scheme within the meaning of the Federal Act on Collective Investment Schemes of 23 June 2006 (CISA) issued by a person domiciled in Switzerland or by a person domiciled abroad jointly with a person domiciled in Switzerland; d. from customers' assets held with Swiss banks and savings banks.

The transfer of the registered office of a public limited company, a limited liability company, or a cooperative society abroad is considered a liquidation for tax purposes; this provision is applicable by analogy to collective investments within the meaning of the CISA.

A corporation or cooperative society that acquires its own participation rights (shares, limited liability company shares, cooperative shares, cooperative bank participation certificates, participation or jouissance certificates) pursuant to a decision to reduce its capital or with the intention to do so is liable for withholding tax on the difference between the acquisition price and the nominal paid-up value of these rights. The same applies when the acquisition exceeds the scope of Art. 659 or Art. 783 of the Swiss Code of Obligations (CO).

Paragraph 1 applies by analogy to a corporation or cooperative society that has acquired its own participation rights according to Arts. 659 or 783 CO and does not subsequently reduce its capital nor resell these rights within a period of six years.

If the corporation or cooperative society acquires its own participation rights within the scope of commitments arising from a convertible or option loan or an employee participation plan, the resale period set in para. 2 is suspended until the extinction of these commitments, but not longer than six years for employee participation plans.

Corporations and cooperative societies that are listed on a Swiss stock exchange must, upon acquiring their own participation rights according to paras. 1 to 3, charge at least half of the liquidation surplus to the reserves from contributions, agios, and additional payments (reserves from capital contributions). If this condition is not met, the amount of reserves from capital contributions is adjusted accordingly, but not exceeding the available reserves from capital contributions.

The following are not subject to withholding tax: a. the reserves and profits of a capital company as per Art. 49, para. 1, let. a of the Federal Law of 14 December 1990 on Direct Federal Tax (DFTA) or of a cooperative society which, during a restructuring as defined in Art. 61 of the aforementioned law, are transferred into the reserves of a Swiss acquiring or newly formed capital company or cooperative society; b. capital gains realized in a collective investment scheme within the meaning of the CISA and the income from its real estate held as direct property, as well as the capital contributed by investors, if the distribution is made through a separate coupon; c. interest on client assets, provided the interest amount does not exceed 200 Swiss francs for a calendar year; d. interest on deposits intended to establish and maintain an asset in the event of survival or death at institutions, funds, and other entities serving old-age, invalidity, or survivors' insurance, or for social welfare; e. ... f. Voluntary contributions by a public limited company, a limited liability company, or a cooperative society, provided these contributions constitute justifiable commercial expenses within the meaning of Art. 59, para. 1, let. c, DFTA; g. interest from banks or companies affiliated with financial groups for the borrowing instruments referred to in Art. 11, para. 4, and 30 b, para. 6, of the Banking Act of 8 November 1934 (BA) and approved by the Swiss Financial Market Supervisory Authority (FINMA) to meet regulatory requirements, if the borrowing instrument was issued between 1 January 2013 and 31 December 2026; h. interest paid by participants to a central counterparty as defined by the Financial Market Infrastructure Act of 19 June 2015 and those paid by a central counterparty to its participants; i. interest from banks or companies affiliated with financial groups for borrowing instruments referred to in Art. 30 b, para. 7, let. b, BA, if: 1. FINMA has approved the borrowing instrument to meet regulatory requirements: – for banks without systemic importance or for companies affiliated with financial groups: at the time of issuance – for systemically important banks as defined in Art. 7, para. 1, BA: at the time of issuance or during the transition from a foreign issuer to a Swiss issuer, 2. the borrowing instrument is issued between 1 January 2017 and 31 December 2026 or a change of issuer as per section 1 occurs during this period.

The refund of reserves arising from capital contributions made by equity holders after 31 December 1996 is treated in the same way as the refund of share capital or cooperative capital if the capital company or cooperative society records the reserves arising from capital contributions in a special account in its commercial balance sheet and reports any changes to this account to the Federal Tax Administration (FTA). Para. 1 ter is reserved.

When refunding reserves arising from capital contributions pursuant to para. 1 bis, capital companies and cooperative societies listed on a Swiss stock exchange must distribute additional reserves at least in an equivalent amount. If this condition is not met, the refund is taxable up to half the difference between the refund and the distribution of other reserves, but up to the amount of other available reserves that can be distributed under commercial law. The other reserves that can be distributed under commercial law must be credited with an equivalent amount to the special account of reserves arising from capital contributions.

Para. 1 ter does not apply to reserves arising from capital contributions: a. that were created after 24 February 2008 in the context of concentrations economically equivalent to mergers, through the contribution of equity or partnership rights in a foreign capital company or cooperative society as per Art. 61, para. 1, let. c of the Federal Law on Direct Federal Tax or during a cross-border transfer to a Swiss capital company according to Art. 61, para. 1, let. d of this law; b. that already existed within a foreign capital company or cooperative society at the time of a cross-border merger or restructuring as defined in Art. 61, para. 1, let. b, and para. 3 of the Federal Law on Direct Federal Tax or of the relocation of the registered office or effective management after 24 February 2008; c. that are refunded to Swiss or foreign legal entities that hold at least 10% of the share capital or cooperative capital of the paying company; d. in the event of liquidation or relocation of the registered office or effective management of the capital company or cooperative society abroad.

The company must record the reserves arising from capital contributions referred to in para. 1 quater, let. a and b, in a special account and report any changes to this account to the FTA.

Paras. 1 ter to 1 quinquies apply by analogy in the case of the use of reserves arising from capital contributions for the issuance of bonus shares or the free increase of the nominal value.

Para. 1 bis does not apply to contributions and agios paid during the duration of a capital fluctuation margin as defined by Art. 653 et seq. CO, except to the extent that they exceed the refunds of reserves within the framework of said capital fluctuation margin.

The ordinance may prescribe that the interests of multiple client assets held by the same creditor or by the same person entitled to dispose of them in the same bank or savings bank must be aggregated; in the case of manifest abuse, the FTA may order such aggregation.

The withholding tax on earnings from gambling applies to the winnings actually paid out that are not exempt from tax according to Art. 24, let. i to i ter, FTA.

The withholding tax on earnings from games of skill or lotteries for promotional sales purposes applies to the winnings actually paid out that are not exempt from tax according to Art. 24, let. j, FTA.

Withholding tax on insurance benefits applies to capital benefits made under life insurance, as well as annuities and pensions, if the insurance is part of the insurer's Swiss portfolio and if, at the time the insured event occurs, the policyholder or a rightful claimant is domiciled in Switzerland.

The transfer of insurance from a Swiss portfolio to a foreign portfolio, as well as the assignment of insurance claims by a person domiciled in Switzerland to a person domiciled abroad, are treated, for withholding tax purposes, as payment of the insurance benefit.

Any payment of assets as per Art. 5, para. 1, let. d, is also considered as a capital benefit made under a life insurance policy, regardless of the reason for the payment.

Exempt from the withholding tax are: a. lump sum benefits, if the total benefits from the same insurance do not exceed 5000 francs; b. annuities and pensions, if their amount, including supplementary allowances, does not exceed 500 francs per year; c. benefits provided by the Federal Acts of 20 December 1946 on Old Age and Survivors’ Insurance and of 19 June 1959 on Disability Insurance.

The ordinance may generally prescribe that lump sum benefits or annuities and pensions from the same insurer for the same individual be aggregated; the Federal Tax Administration (FTA) may impose such aggregation in cases of evident abuse in particular instances.

The term "domiciled in Switzerland" applies to anyone who has their domicile in Switzerland, resides there permanently, has their statutory seat there, or is registered as a business in the commercial register; also considered domiciled in Switzerland within the meaning of Art. 4 are legal entities or commercial companies without legal personality whose statutory seat is abroad but which are effectively managed in Switzerland and conduct activity there.

The term "bank or savings institution" applies to anyone who offers publicly to receive interest-bearing funds or consistently accepts interest-bearing funds; excepted are savings associations that only accept deposits from their own members and corporate savings banks that admit only company personnel as savers, provided these associations or banks reinvest the funds entrusted to them exclusively in securities whose yield is subject to withholding tax.

Any provision of this law dealing with collective investment schemes within the meaning of the CISA applies analogously to all persons performing the corresponding functions. Fixed capital investment companies within the meaning of Art. 110 CISA are equated under this law with capital companies.

The tax obligation falls on the debtor of the taxable benefit.

In the case of collective investment schemes within the meaning of the Federal Act on Collective Investment Schemes, the fund management, the investment company with variable or fixed capital, and the limited partnership for collective investments are subject to withholding tax. If a majority of the unlimited partners of a limited partnership for collective investments have their domicile abroad, or if the unlimited partners are legal entities in which a majority of participants have their domicile or registered office abroad, the custodian bank of the limited partnership for collective investments is jointly liable for the tax on the returns paid.

The tax obligation is fulfilled by: a. the payment of the tax (Art. 12 to 18), or b. the declaration of the taxable benefit (Art. 19 to 20a).

The ordinance determines the conditions under which withholding tax on income from shares in collective investment schemes, as defined by the CIS Act, is not levied in exchange for a bank declaration (affidavit).

For income from movable capital, for gains from gambling that are not exempt from tax according to Art. 24, let. i to i ter, of the Federal Direct Tax Act (FDTA) and for gains from skill-based games or lotteries intended to promote sales that are not exempt from tax according to Art. 24, let. j, FDTA, the tax claim arises at the time when the taxable benefit matures. The capitalization of interest or the decision to transfer the seat abroad (Art. 4, para. 2) triggers the emergence of the tax claim.

In the case of a company acquiring its own participation rights according to Art. 4 a, para. 2, the tax claim arises upon the expiration of the established deadline.

For reinvestment funds, the tax claim arises at the time when the taxable return (Art. 4, para. 1, let. c) is credited.

For insurance benefits, the tax claim arises at the time of payment of the benefit.

If, for a reason dependent on their person, the debtor is unable to perform the taxable benefit at maturity, the tax claim arises only on the date to which the payment of this benefit or any other replacing benefit is postponed, but in any case at the time of actual execution.

The withholding tax amounts to: a. for income from movable capital, winnings from gambling not exempt from tax according to Art. 24, let. i to i ter, FTA and winnings from skill games or lotteries intended to promote sales not exempt from tax according to Art. 24, let. j, FTA: 35% of the taxable benefit; b. for life annuities and pensions: 15% of the taxable benefit; c. for other insurance benefits: 8% of the taxable benefit.

The Federal Council may, at the end of a year, reduce the tax rate set in para. 1, let. a to 30%, when the monetary situation or the capital market requires it.

The taxpayer must, when paying, transferring, crediting, or allocating the taxable benefit, deduct the amount of the withholding tax, regardless of the creditor's identity; any agreement to the contrary is void.

The taxpayer must provide the recipient of the taxable benefit with the necessary information to claim the right to reimbursement and, upon request, issue them a certificate.

Jointly liable with the taxpayer are: a. for the withholding tax owed by a legal entity, a commercial partnership without legal personality, or a collective investment scheme in liquidation: the individuals responsible for the liquidation, up to the amount of the liquidation proceeds; b. for the withholding tax owed by a legal entity or a collective investment scheme transferring its domicile abroad: the bodies of this entity or, in the case of a limited partnership for collective investments, the custodian bank, up to the net assets of the legal entity and the collective investment.

Persons designated in para. 1 are only liable for tax claims, interest, and costs that arise, are asserted by the authority, or fall due during their administration; their liability is extinguished if they prove that they have done everything that could reasonably be expected of them to ascertain and fulfill the tax claim.

The person jointly liable has, in the procedure, the same rights and duties as the taxpayer.

The anticipatory tax becomes due: a. on the interest of cash bonds and client deposits with Swiss banks or savings institutions: thirty days after the expiration of each commercial quarter for the interest accrued during that quarter; b. ... c. on other income from movable capital, on winnings from gambling not exempt from tax according to art. 24, let. i to i ter, LIFD, and on winnings from skill games or promotional lotteries not exempt from tax according to art. 24, let. j, LIFD: thirty days after the tax claim arises (art. 12); d. on insurance benefits: thirty days after the end of each month for benefits executed during that month.

Interest on arrears is due, without formal notice, on tax amounts once the deadlines set in para. 1 have expired. The Federal Department of Finance determines the interest rate.

No interest on arrears is due if the material conditions for the fulfillment of the tax obligation by declaring the taxable benefit are met in accordance with: a. art. 20 and its implementing provisions, abis. art. 20 a and its implementing provisions, or b. the applicable international treaty in the specific case and its implementing provisions.

The opening of bankruptcy proceedings against the debtor or the transfer of their domicile or place of residence abroad triggers the due date of the tax.

The tax claim is subject to a statute of limitations of five years from the end of the calendar year in which it was originated (Art. 12).

The statute of limitations does not run, or is suspended, as long as the tax claim is subject to a guarantee, or as long as none of the persons liable for payment is domiciled in Switzerland.

The statute of limitations is interrupted each time a person liable for payment acknowledges the tax claim and each time an official act aimed at recovering the claim is brought to the attention of a person liable for payment. Upon each interruption, a new limitation period begins to run.

The suspension and interruption have effect with regard to all persons liable for payment.

The tax liability that has arisen as a result of the revaluation of depreciated participation rights for recovery purposes, or during the redemption of profit-sharing bonds issued on the occasion of a recovery, may be waived to the extent that the collection of the tax would have clearly harsh consequences for the recipient of the taxable benefit.

The insurer must fulfill its tax obligation by declaring the taxable insurance benefit, unless the insured party or a beneficiary has communicated their objection to the declaration in writing before the payment is made.

If the withholding tax the insurer is required to pay as a result of the objection exceeds the amount of the benefit that remains to be paid, the objection to the declaration is only valid if the objector reimburses the insurer for the difference.

The insurer is required to report the benefits to the Federal Tax Administration (FTA) within thirty days following the end of the month during which they were executed.

The insurer is also required to report to the FTA the periodic benefits of annuity insurance subject to the Federal Law of April 2, 1908, on the Insurance Contract within thirty days following the end of the year during which they were executed.

If it becomes apparent that the payment of tax on income from movable capital would lead to unnecessary complications or evident hardships, the taxpayer may be authorized to fulfill their tax obligation by declaring the taxable benefit.

The Federal Council specifies the cases in which the declaration procedure is permitted. The declaration procedure must especially be allowed for dividends and appreciable monetary benefits paid within a Swiss or international group.

In the cases referred to in Art. 16, para. 2 bis, let. a and b, the declaration procedure is permitted even if the declaration of the taxable benefit, the request for authorization to use the declaration procedure, or the request for application of the declaration procedure is not submitted within the prescribed deadline.

For in-kind winnings from gambling not exempt from tax under Art. 24, let. i to i ter, of the Federal Act on Direct Federal Tax (FADFT), and for in-kind winnings from games of skill or lotteries intended to promote sales not exempt from tax under Art. 24, let. j, FADFT, it is the responsibility of the organizer to fulfill the tax obligation through a declaration of the taxable benefit.

The declaration must be submitted in writing to the Federal Tax Administration (FTA) within ninety days following the maturity of the gain. It must be accompanied by a certificate of residency from the winner.

The FTA forwards the declaration to the tax authority of the canton where the winner resides.

The declaration procedure is also accepted when the declaration is not filed within ninety days following the maturity of the gain.

The beneficial owner as defined in Articles 22 to 28 may request a refund of the withholding tax deducted by the debtor on the following grounds: a. for income tax from movable capital assets: if at the time of maturity of the taxable performance, the beneficial owner had the right of enjoyment over the assets that generated the income subject to tax; b. for winnings from gambling that are not exempt from tax according to Art. 24, let. i to i ter, of the Federal Income Tax Act (FITA) and winnings from games of skill or lotteries intended to promote sales that are not exempt from tax under Art. 24, let. j, FITA: if the person was the owner of the lottery ticket at the time of the drawing or if they are the participant entitled to collect the winnings.

A refund is inadmissible in all cases where it could allow for tax evasion.

When special circumstances justify it (stock market transactions, etc.), the ordinance may regulate the right to a refund by derogating from para. 1.

Natural persons are entitled to a refund of the advance tax if they were domiciled in Switzerland at the time the taxable benefit was due.

The ordinance regulates the right to a refund for natural persons who, due to their mere residence, are required to pay federal, cantonal, or communal taxes on income or wealth; when special circumstances justify it, it may also provide for a refund in other cases.

Anyone who, contrary to legal provisions, fails to declare to the competent tax authorities an income subject to withholding tax or the capital from which this income is derived loses the right to a refund of the withholding tax deducted from this income.

There is no loss of the right if the omission of the income or the capital in the tax declaration is due to negligence and if, in a taxation procedure, a revision, or a tax recall whose decision has not yet become enforceable, this income or capital: a. is subsequently declared, or b. has been added to the income or capital account as a result of a finding by the tax authority.

The Confederation, the cantons, and the communes, as well as their establishments, enterprises, and special funds under their administration, are entitled to a refund of the withholding tax if the assets generating the income subject to tax appear in the accounts.

Legal entities and commercial companies without legal personality are entitled to a refund of the withholding tax if they had their headquarters in Switzerland at the time the taxable service was due.

Foreign enterprises that are required to pay cantonal or communal taxes on their income derived from a permanent establishment in Switzerland, or on the operating assets of such an establishment, are entitled to a refund of the withholding tax deducted from the income of these assets.

Collectives and institutions established abroad that do not engage in profit-making activities are entitled to a refund of the withholding tax that was deducted from the income of the assets exclusively allocated to worship, education, or other public benefit works for the benefit of Swiss nationals residing abroad.

The ordinance governs the right to a refund for condominium owners' associations as well as other groups of persons and bodies of assets that do not have legal personality, but which have their own organization and conduct their activities in Switzerland or are administered there.

Legal entities, commercial companies without legal personality, and foreign enterprises with a permanent establishment in Switzerland (art. 24, para. 2, 3, and 4) that do not regularly account as income a revenue subject to withholding tax lose the right to reclaim the tax deducted from that revenue.

When special circumstances justify it (such as free shares, etc.), the ordinance may allow exceptions to the condition stipulated in para. 1, that the income subject to tax be accounted as revenue.

The collective investment scheme that pays the withholding tax on income from units of a collective investment scheme within the meaning of the CISA (Art. 10, para. 2) is entitled, on its own behalf, to the reimbursement of the withholding tax withheld from this investment; Art. 25 applies by analogy.

Holders of units in a collective investment scheme as defined by the CISA who are domiciled abroad are entitled to a refund of the withholding tax deducted from the income of these units, provided that at least 80% of this income is derived from foreign sources.

Foreign states are entitled to a refund of the withholding tax insofar as it has been deducted from interest on assets placed by them in Swiss banks for the exclusive use of their diplomatic and consular representations.

Beneficiaries of tax exemptions under the Federal Act on Host State of June 22, 2007, are entitled to a refund of the withholding tax if, upon the due date of the taxable service, legal provisions, agreements, or customary practices exempt them from the payment of cantonal taxes on securities and bank assets as well as on the income generated from these assets.

If a foreign state does not grant reciprocity, the refund is denied to it, as well as to the members of its diplomatic and consular representations.

Anyone who wishes to obtain a refund of the withholding tax must submit a written application to the competent authority.

The application may be submitted at the earliest after the end of the calendar year in which the taxable benefit became due.

The application may be submitted earlier when there are valid reasons (end of tax liability, dissolution of a legal entity, bankruptcy, etc.) or when particularly severe consequences justify it.

...

Natural persons must submit their refund claims to the tax authorities of the canton where they were domiciled at the end of the calendar year in which the taxable benefit became due.

Legal entities, commercial companies without legal personality, and all other entitled parties not mentioned in para. 1 must submit their claims to the FTA.

When circumstances justify it, the Federal Council may regulate jurisdiction differently.

The cantons reimburse the anticipatory tax, generally, in the form of a set-off against the cantonal and municipal taxes that the applicant must pay, with any excess being paid out in cash; they may provide, in their implementing provisions, for the full reimbursement of the tax in cash.

The cantonal and municipal taxes against which the anticipatory tax is credited, in accordance with paragraph 1, will be designated in the cantonal implementing provisions.

When the reimbursement request is submitted simultaneously with the cantonal tax return or, if no declaration is necessary, within a deadline set by the canton, the set-off is made against the cantonal and municipal taxes that are due to be paid during the same year.

The amounts to be set off or reimbursed do not bear interest.

The right to a refund is extinguished if the claim is not submitted within three years after the end of the calendar year in which the benefit was due.

If the withholding tax is only paid and transferred following a dispute with the Federal Tax Administration (FTA) and if the period specified in para. 1 has expired or if there are not at least sixty days remaining from the payment of the tax until the expiration of the period, an additional period of sixty days to submit the claim begins to run from the payment of the tax.

The beneficiary of an insurance benefit reduced by the withholding tax is entitled to a refund of the tax if they provide the insurer's certificate regarding the deduction (Art. 14, para. 2) and supply all information necessary to assert the tax claims of the Confederation and the cantons related to the insurance in question.

Anyone claiming the right to a refund must submit a written application to the Federal Tax Administration (FTA); the right expires if the application is not submitted within three years following the end of the calendar year in which the insurance benefit was executed.

Articles 31, para. 4, and 32, para. 2, are applicable.

For the collection and reimbursement of the withholding tax, the FTA issues all instructions and makes all decisions that are not expressly reserved for another authority.

Insofar as the cantons are responsible for the reimbursement of the withholding tax, the FTA ensures the uniform application of federal regulations.

The Federal Council may prescribe the execution of the procedures provided for by this law via electronic means. It shall determine the modalities of this execution.

When a procedure is carried out electronically, the Federal Tax Administration (FTA) ensures the authenticity and integrity of the data transmitted.

When a document for which a signature is required by law is submitted electronically, the FTA may recognize, in place of a qualified electronic signature, another form of electronic confirmation of the data by the taxpayer or applicant.

Subject to the provisions of federal law, cantonal law regulates the organization and management of cantonal authorities responsible for the execution of this law.

Each canton shall establish an appeals commission independent from the administration.

The cantons shall determine, in their implementing provisions, the offices responsible for the reimbursement of withholding tax (cantonal withholding tax offices).

The cantonal implementing provisions of this law must be submitted for approval to the Confederation.

The cantons provide for the possibility of using electronic procedures. In this context, they ensure, in accordance with cantonal law, the authenticity and integrity of the data transmitted.

When a document for which a signature is required by law is submitted electronically, the cantons provide, in place of the signature, the option for an electronic confirmation of the data by the applicant.

They stipulate that the tax authority delivers documents to the applicant in electronic form with the latter's consent.

The tax authorities of the cantons, districts, circles, and communes, as well as the Federal Tax Administration (FTA), shall assist each other in the fulfillment of their duties. They must communicate appropriate information, provide necessary details, and mutually allow consultation of official documents, all free of charge.

The administrative authorities of the Confederation, as well as the authorities of the cantons, districts, circles, and communes other than those mentioned in para. 1, are obliged to provide the FTA with information if the requested information may be significant for the enforcement of this law. Information may only be refused if significant public interests oppose its disclosure, particularly the internal or external security of the Confederation or the cantons, or if providing the information would notably hinder the solicited authority in the performance of its duties. The secrecy of postal, telephone, and telegraph services must be preserved.

Disputes regarding the obligation of federal administrative authorities to provide information are adjudicated by the Federal Council; disputes concerning the obligation of cantonal, district, circle, and commune authorities to provide information are adjudicated by the Federal Supreme Court, provided the cantonal government has rejected the request for information (Art. 110 et seq. of the Judicial Organization of December 16, 1943).

Organizations entrusted with tasks related to public administration are subject to the same information obligations as the authorities, within the limits of these tasks. Para. 3 applies by analogy.

The FTA manages, for the fulfillment of the tasks incumbent upon it under the present law, an information system. This system may contain sensitive data related to significant administrative or criminal sanctions in tax matters.

The FTA and the authorities mentioned in Art. 36, para. 1, exchange data that may be useful for the fulfillment of their tasks. The authorities mentioned in Art. 36, paras. 2 and 4, communicate to the FTA data that may be important for the execution of the present law. ...

Data is communicated in specific cases or in the form of lists or through electronic data carriers. It may also be made accessible through a call procedure. This administrative assistance is free of charge.

Personal data and the equipment used, such as data carriers, software programs, and documentation concerning these programs, must be protected from any unauthorized manipulation, modification, or destruction as well as theft.

The Federal Council may issue implementing provisions concerning, in particular, the organization and management of the information system, the categories of data to be entered, access to data as well as processing authorizations, the duration of retention, archiving, and destruction of data.

Any person responsible for the implementation of this law or called upon to assist in its execution is obliged, with respect to other official services and private individuals, to maintain secrecy regarding what they learn in the course of their duties and to refuse access to official documents.

The obligation of secrecy does not exist: a. when it involves providing the assistance stipulated in Art. 36, para. 1, or fulfilling the obligation to report punishable acts; b. with respect to judicial or administrative bodies that have been authorized, either generally by the Federal Council or specifically by the Federal Department of Finance, to request official information from the authorities responsible for the implementation of this law.

Any person liable for withholding tax, in accordance with this Act, is obliged to register with the Federal Tax Administration (FTA) without waiting to be invited to do so.

The taxpayer must, upon the due date of the tax (Art. 16), submit to the FTA the prescribed statement along with the supporting documents, without waiting to be invited to do so, and simultaneously pay the tax or make the declaration replacing the payment (Art. 19 and 20).

The declaration procedure under Art. 20a, para. 1, must be completed within ninety days following the due date of the taxable benefit, and the declaration must be accompanied by supporting documents and a certificate of residence of the beneficiary.

Any declaration pursuant to Art. 19 concerning insurance benefits paid to individuals domiciled in Switzerland must mention their social security number (AVS number).

Individuals domiciled in Switzerland who are entitled to insurance benefits under Art. 7 must communicate their AVS number to the person obliged to declare under Art. 19. If this number is not provided, the legal or contractual effects of default are suspended for the person obliged to declare until they receive this number. Art. 19, para. 3, remains reserved.

The taxpayer must conscientiously inform the Federal Tax Administration (FTA) of all facts that may be important for determining the tax liability or the basis for tax calculation; in particular, he must: a. fully and accurately complete the tax returns and declarations, as well as any questionnaires; b. keep his records diligently and produce them, upon request by the authority, along with the supporting documents and other relevant materials.

Disputing the obligation to pay the withholding tax or to make the declaration substituting the payment does not exempt one from the obligation to provide information.

If the obligation to provide information is disputed, the FTA shall issue a decision.

The Federal Tax Administration (FTA) monitors compliance with the obligation to register as a taxpayer; it also oversees tax returns and payments, as well as the submission of declarations, in accordance with Articles 19 and 20.

The FTA may, in order to clarify the facts, examine the taxpayer's books, supporting documents, and other records on site.

If it becomes evident that the taxpayer has not fulfilled their legal obligations, they must be given an opportunity to explain the identified deficiencies.

If the dispute cannot be resolved, the FTA shall issue a decision.

Findings made during an inspection as per para. 1 or para. 2 at a bank or savings institution according to the Banking Law, the Swiss National Bank, or a central mortgage bond office may only be used for the application of withholding tax. Banking secrecy must be respected.

The Federal Tax Administration (FTA) issues all necessary decisions for the collection of the withholding tax; in particular, it issues a decision: a. when the tax liability, joint and several liability, or the obligation to transfer is contested; b. when, in a specific case, it is provisionally requested to officially determine the tax liability, the basis for tax calculation, joint and several liability, or the obligation to transfer; c. when the taxpayer or the jointly and severally liable person does not pay the tax due according to the statement.

Decisions of the Federal Tax Administration (FTA) can be appealed within thirty days following their notification.

The appeal must be submitted in writing to the FTA; it must contain specific conclusions and state the facts that justify it.

If the appeal has been validly submitted, the FTA will review its decision without being bound by the conclusions presented.

The appeal procedure continues, notwithstanding the withdrawal of the appeal, if there are indications that the contested decision is not in accordance with the law.

The decision on the appeal must be reasoned and indicate the avenue of recourse.

As a general rule, the procedure for collection and restitution is free of charge. Regardless of the outcome of the procedure, the costs of investigations may be charged to the party that caused them by their own fault.

If, after a formal demand, the debtor fails to pay the taxes, interest, and costs, enforcement proceedings are initiated; the filing of the claim in a bankruptcy is reserved.

If the tax claim has not yet been established by a final decision and is contested, its definitive ranking does not occur as long as a final decision is lacking.

If a taxpayer who has not yet fulfilled the obligation to impose the tax on the beneficiary is declared bankrupt, or if in an enforcement proceeding initiated against them, seizure is required, their rights of recourse are transferred to the Confederation up to the amount of the tax not yet paid.

...

The FTA may require security for taxes, interest, and costs, even if they have not yet been established by a final decision or have not yet become due: a. when the recovery appears to be jeopardized; b. when the taxpayer has no domicile in Switzerland, or when they are making arrangements to abandon their domicile in Switzerland or to be removed from the commercial register; c. when the taxpayer is in default or has repeatedly been in default of payment. The request for security must indicate the legal basis for the guarantee, the amount to be secured, as well as the office receiving the security. If the request for security is based on para. 1, let. a or b, it constitutes a sequestration order pursuant to Art. 274 of the Federal Act of 11 April 1889 on Debt Enforcement and Bankruptcy; opposition to the sequestration order is excluded. Requests for security by the FTA may be appealed to the Federal Administrative Court. An appeal against such decisions does not have a suspensive effect. ...

Anyone requesting a refund of the withholding tax must conscientiously inform the competent authority of all facts that may be important for determining the right to a refund; in particular, they must: a. complete the application forms and questionnaires fully and accurately; b. provide, upon the authority's request, certificates regarding the deduction of the tax (Art. 14, para. 2) and produce books, supporting documents, and other records.

If the applicant fails to fulfill their obligations to provide information and the right to a refund cannot be determined without the information required by the authority, the application is rejected.

The person who has issued a certificate regarding the deduction of withholding tax is obliged to provide the applicant, upon request, with additional written information for the competent authority.

Partners, co-owners, and joint owners are required to inform the competent authority, upon request, about the legal relationship that binds them to the applicant, particularly concerning their shares, claims, and withdrawals.

If the third party disputes their obligation to provide information, the authority issues a decision that can be challenged through objection and appeal.

The competent authority may conduct on-site inspections of the information provided by the applicant, or by third parties in accordance with Art. 49, para. 2, and on these occasions examine the books, supporting documents, and other records.

The FTA may also verify, with the entity that issued them, the certificates concerning the tax deduction (Art. 14, para. 2), as well as any additional information provided (Art. 49, para. 1). Art. 40, para. 5, is applicable.

Cantonal authorities may furthermore exercise the powers conferred upon them in their capacity as the taxing authority.

If the Federal Tax Administration (FTA) rejects the request in whole or in part, it issues a decision, unless the dispute can be resolved in another manner.

Any refund that is not based on a decision according to para. 1 is made subject to subsequent verification of the right to said refund; after a period of three years from the refund, such verification can only be carried out in connection with a criminal procedure.

If the verification reveals that the refund was wrongly granted and if the applicant, their heirs, or the jointly liable persons refuse to return the amount, the FTA issues a decision demanding restitution.

Articles 42 to 44 concerning the procedure for claims and appeals and the procedural costs, as well as, in the case of para. 3, Articles 45 and 47 concerning enforcement and securities, apply by analogy.

The cantonal office for withholding tax reviews the requests submitted to it, establishes the facts, and takes all necessary measures to accurately determine the entitlement to a refund.

After concluding its investigation, the cantonal office for withholding tax issues a decision regarding the right to a refund; the refund decision may be linked to the tax assessment decision.

If the cantonal office for withholding tax rejects the request in whole or in part, it must briefly justify its decision.

The refund granted by the cantonal office for withholding tax is subject to a subsequent review of the entitlement to a refund by the Federal Tax Administration (FTA), in accordance with art. 57.

The decision of the cantonal office of withholding tax may be subject to a written appeal to this office within thirty days following its notification.

The provisions of Articles 42 and 44 apply by analogy to the appeal procedure.

Article 55 is reserved.

The decision issued on a claim by the cantonal withholding tax office may, within thirty days following its notification, be challenged through a written appeal to the cantonal appeals commission; the appeal must contain precise conclusions and state the facts that justify it. Art. 55 is reserved.

The appeals commission shall take the necessary investigative measures; Arts. 48 to 50 apply by analogy.

The Federal Tax Administration (FTA) must be given the opportunity to participate in the procedure and to submit conclusions.

The appeal procedure shall continue, notwithstanding the withdrawal of the appeal, if there are indications that the contested decision is not in accordance with the law, as well as if the federal administration or the cantonal tax administration has submitted conclusions and maintains them.

The appeals commission renders its decision on the appeal based on the results of its investigation, without being bound by the conclusions submitted.

The decision must be reasoned and indicate the avenue of appeal; it is communicated in writing to the persons directly concerned, as well as to the cantonal and federal tax administrations.

The cantons may, in their implementing provisions, prescribe that the procedure for complaint and the procedure for appeal to the cantonal appeals commission (including time limits) be governed by the provisions of the cantonal procedure concerning contestation and review of taxation, when the reimbursement decision has been linked to a taxation decision.

The decision of the cantonal appeals commission may be appealed to the Federal Supreme Court.

The cantons shall submit to the Confederation a statement of the amounts of withholding tax they have refunded.

The Federal Tax Administration (FTA) shall review the statements from the cantons; for this purpose, it may consult all relevant documents with the cantons, districts, circles, and municipalities, and may order, in specific cases, additional investigative measures or exercise itself the investigative powers of a cantonal withholding tax office.

If the review reveals that the refund was wrongfully granted by the cantonal withholding tax office, the FTA shall provisionally order a corresponding reduction of the amount claimed by the canton in one of its subsequent statements.

After a period of three years from the end of the calendar year in which the decision of the cantonal withholding tax office became final, the FTA can only order the reduction in connection with a criminal proceeding.

If a provisional reduction has been ordered in accordance with Art. 57, para. 3, the cantonal withholding tax office may request the restitution of the tax from the person who benefited from the refund; the right of the canton to claim restitution expires if it is not exercised in the form of a decision within six months following the notification of the provisional reduction.

The decision of the canton on the obligation to restitute can be challenged within thirty days of its notification through an appeal to the cantonal appeals commission; Art. 54 and 56 are applicable.

The provisional reduction lapses if the decision on appeal denies the obligation to restitute; if it admits it in whole or in part, the reduction becomes definitive to that extent.

When, without the consent of the Federal Tax Administration (FTA), the cantonal withholding tax office does not request restitution, or when, in its decision that has entered into force, it has not requested it for the entire amount, the provisional reduction becomes definitive, unless the canton files an action before the Federal Supreme Court within nine months following its notification (Art. 120 of the Act of June 17, 2005, on the Federal Supreme Court).

The decision on restitution made by the cantonal withholding tax office or the cantonal appeals commission is equivalent to an enforceable judgment within the meaning of Art. 80 of the Federal Act of April 11, 1889, on Debt Enforcement and Bankruptcy.

Articles 66 to 69 of the Federal Act of December 20, 1968, on Administrative Procedure apply mutatis mutandis to the revision and interpretation of the decisions of the Federal Tax Administration and the cantonal authorities.

...

...

Calculation and clerical errors in the statements from the cantons pursuant to Art. 57 may be corrected within three years of the dispatch of the statement.

If the dispute cannot be resolved, the competent authority issues a decision that can be challenged by way of complaint and appeal.

Anyone who, intentionally or negligently, for their own benefit or that of a third party: a. evades amounts of withholding tax owed to the Confederation; b. fails to fulfill the obligation to declare a taxable benefit (Art. 19 and 20) or makes a false declaration; c. obtains an unjustified refund of the withholding tax, or any other unlawful tax benefit, is liable for tax evasion to a fine of up to 30,000 francs or, if the resulting amount is greater, up to three times the evaded tax, unless Art. 14 of the Federal Act of March 22, 1974, on Administrative Criminal Law is applicable.

Anyone who, intentionally or negligently, endangers the legal execution of withholding tax by: a. failing in the tax collection procedure to fulfill the obligation to register as a taxpayer, to submit declarations, statements, and reports, to provide information, and to produce books and supporting documents; b. submitting, either as the taxpayer or on behalf of the taxpayer, an incorrect certificate concerning the tax deduction (Art. 14, para. 2); c. providing inaccurate information or concealing important facts in a statement or report, in a declaration or affidavit (Art. 11), in an application for reimbursement, remission, or exemption from tax, or by presenting inaccurate supporting documents to substantiate important facts; d. providing inaccurate information as a taxpayer, applicant, or third party required to provide information; e. claiming a right to a reimbursement to which they are not entitled or which has already been satisfied; f. violating the obligation to regularly maintain and preserve books, records, and supporting documents; or g. making it more difficult, preventing, or making impossible the regular execution of an examination of the books or other official audits, shall incur a fine of up to 20,000 francs, unless one of the penal provisions of Arts. 14 to 16 of the Federal Law of March 22, 1974, on Administrative Criminal Law is applicable.

In the case of an offense as defined in para. 1, let. g, criminal prosecution according to Art. 285 of the Swiss Penal Code is reserved.

Anyone who, intentionally or through negligence, has omitted or promised to omit the transfer of the withholding tax shall be liable to a fine of up to 10,000 francs.

Anyone shall be liable to a fine not exceeding 5000 francs who: a. fails to comply with a condition upon which a particular authorization depends; b. contravenes a provision of the present law or an implementing ordinance, the general instructions established on the basis of such provisions, or a decision notified to them under the threat of the penalty provided for in this article; c. does not respect the deadlines provided for actions mentioned in Art. 20, para. 3, as established in the relevant implementing provisions; d. does not respect the deadline referred to in Art. 20a, para. 2.

Negligent offenses are also punishable.

The Federal Law of March 22, 1974, on Administrative Penal Law is applicable; the Federal Tax Administration (FTA) is the competent administrative authority for prosecution and adjudication.

If the offense has been committed in proceedings opened before a cantonal authority, the latter is required to report the offense to the FTA.

The cantonal authority has the discretion to impose a fine of up to 500 francs for non-compliance with regulatory prescriptions (Art. 64); the procedure is governed by the corresponding provisions of cantonal tax legislation.

...

Holders, domiciled abroad, of bonds issued before October 10, 1921, by a Swiss public law entity, with the promise that the interest will be paid without any tax deduction, are entitled to a refund of the withholding tax deducted from this interest.

...

Articles 4a, 12, para. 1bis, and 16, para. 2, are also applicable to events that occurred before the entry into force of these provisions, subject to limitation or a definitive taxation.

Individuals must submit their claim for reimbursement of withholding tax on taxable services due before January 1, 2001, to the tax authorities of the canton where they were domiciled at the beginning of the calendar year following the due date of the taxable service.

Articles 16, paragraph 2 bis, and 20 are also applicable to circumstances that occurred before the entry into force of the amendment of September 30, 2016, unless the tax claims or interest claims are prescribed or became final before January 1, 2011.

If the taxpayer satisfies the conditions referred to in Article 16, paragraph 2 bis, the compensatory interest he has already paid shall be reimbursed to him without remunerative interest upon submission of a request.

The request must be submitted within one year following the entry into force of this amendment.

Art. 23, para. 2, applies to claims arising from 1 January 2014, provided that the right to reimbursement of the withholding tax has not yet been subject to a decision that has come into force.

The stamp duty on coupons is no longer collected from the date of entry into force of this law; contrary provisions of federal legislation cease to be in effect.

The provisions that have ceased to be in effect remain applicable, even after the entry into force of this law, to claims that arose, to facts that occurred, and to legal relationships that were formed before this date.

If the duty on foreign securities coupons has been settled by a single lump-sum payment, no proportional amount is refunded for coupons matured after the entry into force of this law.

Coupons within the meaning of the Federal Act of June 25, 1921, concerning the stamp duty on coupons and documents that are assimilated thereto under federal stamp duty legislation, cannot be subjected by the cantons to a stamp duty or registration duty.

The following are repealed upon the entry into force of this Act: a. the Federal Council decree of September 1, 1943, instituting a withholding tax; b. the Federal Council decree of February 13, 1945, aimed at securing the rights of the tax authorities concerning insurance matters; c. Articles 34 to 40 and 48 of the Federal Decree of December 22, 1938, ensuring the application of the transitional federal financial regime.

Articles 35 to 40 and 48 of the Federal Decree of December 22, 1938, ensuring the application of the transitional federal financial regime remain applicable to all facts that occurred during the validity of these provisions.

The Federal Council and the cantons shall enact the necessary implementing provisions. If a canton is unable to enact the implementing provisions in due time, the Federal Council shall temporarily take the necessary measures.

The Federal Council shall set the date of entry into force of this Act. Date of entry into force: January 1, 1967