What is the anticipatory tax
The anticipatory tax (Verrechnungssteuer) is a Swiss federal tax levied at source on certain capital income. It is withheld directly by the debtor of the payment — typically a bank or a company — and remitted to the Federal Tax Administration (FTA).
The main rate is 35% and applies to dividends, bank and bond interest, and lottery winnings. The primary purpose of the tax is to ensure that such income is properly declared: those who correctly report it in their tax return receive a full refund of the tax withheld.
The anticipatory tax thus serves a guarantee function (Sicherungszweck): it is not designed as a definitive charge, but as an incentive for the correct declaration of capital income. For honest Swiss taxpayers, it is a tax advance that is 100% recoverable.
Which income is subject to the tax
The anticipatory tax applies to the following income from Swiss sources:
- Dividends distributed by Swiss companies (SA, Sagl) — rate 35%
- Interest on savings accounts and bank deposits with Swiss banks — rate 35%
- Interest on bonds issued by Swiss debtors — rate 35%
- Lottery and gambling winnings exceeding CHF 1,000 — rate 35%
- Life insurance benefits (yield component) — rate 8%
- Life annuities and private pensions — rate 15%
The anticipatory tax only applies to income from Swiss sources. Dividends from foreign companies or interest on bank accounts abroad are not subject to this tax (but may be subject to withholding taxes in the country of origin).
Anticipatory tax rates
The anticipatory tax does not have a single rate. Here are the rates provided by the Federal Act on Anticipatory Tax (VStG):
| Type of income | Rate | Detail |
|---|---|---|
| Dividends and profit distributions | 35% | Applied to the gross amount of dividends distributed by Swiss SA, Sagl and cooperatives |
| Bank and bond interest | 35% | Withheld by the bank or bond issuer before crediting the beneficiary |
| Lottery winnings | 35% | On winnings exceeding CHF 1,000; winnings up to CHF 1,000 are exempt |
| Insurance benefits / annuities | 8% / 15% | 8% on life insurance benefits, 15% on life annuities |
The 35% rate is one of the highest in the world for withholding taxes on capital income. However, for Swiss residents who declare correctly, it is fully refunded or credited against taxes owed.
How the mechanism works
The anticipatory tax works on a withholding-at-source-with-subsequent-refund principle. Here is the complete process:
Income accrual
A Swiss company resolves a dividend or a bank credits interest. The gross income is subject to the 35% anticipatory tax.
Withholding at source
The debtor of the payment (bank, company) withholds 35% and pays the beneficiary only the 65% net amount. The withheld amount is remitted to the FTA within 30 days.
Tax return
The taxpayer declares the gross income (100%) in their annual tax return. It is essential to declare both the income and the assets from which it derives.
Refund request
For Swiss residents, the refund occurs automatically through the tax return (form DA-1 enclosed). For non-residents, form R must be submitted to the tax authority of their country of residence.
Refund or offset
The cantonal tax authority refunds the anticipatory tax or credits it against cantonal and communal taxes owed. The refund normally occurs with the final tax assessment notice.
How to obtain the refund
The refund of the anticipatory tax is a taxpayer's right, but it is subject to specific conditions. Here is what is required:
Conditions for the refund
- The beneficiary must have the right of enjoyment over the income at the time the payment falls due
- Income subject to the anticipatory tax must be fully declared in the tax return (gross income + assets)
- The refund request must be submitted within 3 years from the end of the calendar year in which the income accrued
- The taxpayer must not have committed fraud or tax evasion in relation to the income in question
Swiss residents
The refund is processed through the annual tax return. The taxpayer completes form DA-1 (enclosed with the return) listing all income subject to the anticipatory tax. The cantonal tax authority credits the amount against taxes owed or refunds it.
Non-residents (foreign beneficiaries)
Foreign beneficiaries may obtain a partial refund of the anticipatory tax based on double taxation agreements (DTA). The request must be submitted through the country-specific form R to the FTA, which verifies the right to a treaty-based refund.
Attention: the right to a refund expires after 3 years. If you do not submit the request within this period, the anticipatory tax becomes final and is no longer recoverable. For dividends received in 2025, the refund deadline is 31 December 2028.
Forms and deadlines
The refund procedure requires the completion of specific forms depending on the taxpayer's situation:
| Form | Intended for | Deadline |
|---|---|---|
| DA-1 | Natural persons resident in Switzerland — enclosed with the cantonal tax return | Together with the tax return (cantonal deadline) |
| DA-2 | Legal entities (SA, Sagl) domiciled in Switzerland — enclosed with the tax return | Together with the tax return |
| DA-3 | Pension funds, foundations and tax-exempt institutions — direct application to the FTA | Within 3 years from the end of the calendar year |
| Form R (R-US, R-IT, etc.) | Foreign beneficiaries invoking a DTA — application through the tax authority of the country of residence | Within 3 years from the end of the calendar year (check applicable DTA) |
Since 2024, the FTA provides the online portal 'ePortal Verrechnungssteuer' for refund requests from legal entities. For natural persons, the refund remains integrated in the cantonal tax return.
Practical tips
- Always declare gross income (before the 35% withholding) in your tax return — if you only declare the net amount received, you lose the right to a refund of the difference
- Do not forget to also declare the underlying assets: for dividends, state the value of securities as at 31 December; for interest, the account balance
- Complete form DA-1 carefully: a single missing security can result in the loss of the refund for that specific income
- If you hold securities in custody accounts at multiple banks, request a tax certificate (Steuerverzeichnis) from each one containing all the data needed for the DA-1
- For lottery winnings above CHF 1,000, the anticipatory tax is withheld automatically — remember to declare them to recover the 35%
- If you are an investor with participations in Swiss companies, consider whether it is beneficial to opt for the notification procedure (Meldeverfahren) instead of the actual withholding, where applicable to intra-group dividends
- Use AccountEX to automatically track capital income and prepare the documentation for the anticipatory tax refund in your annual return
Frequently asked questions
Is the anticipatory tax a definitive cost?
No, for Swiss residents who correctly declare their income, the anticipatory tax is fully refunded or credited against taxes owed. It becomes a definitive cost only if the income is not declared or if the 3-year refund deadline expires.
Should I declare dividends gross or net of the anticipatory tax?
Always gross. If you receive a net dividend of CHF 650, you must declare CHF 1,000 (the gross amount). Form DA-1 then serves to claim the refund of the CHF 350 withheld. If you only declare CHF 650, you lose the right to the refund.
How long do I have to claim the refund?
The right to a refund expires after 3 years from the end of the calendar year in which the income accrued. For example, for dividends received in 2025, you have until 31 December 2028. After that date, the anticipatory tax is definitively lost.
Can non-residents obtain a refund?
Yes, but only partially and only if a double taxation agreement (DTA) exists between Switzerland and the country of residence. The DTA establishes the residual rate (typically 15% for dividends) and the refund concerns the difference between 35% and the treaty rate. The application is submitted through the country-specific form R.
What happens if I do not declare income subject to the anticipatory tax?
Two things are lost: the right to a refund of the anticipatory tax withheld, and you risk proceedings for tax evasion with related penalties. The anticipatory tax is specifically designed as a deterrent against failure to declare capital income.
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