No Loose Ends for the Tax Submission

The advance tax is a tax levied at the source by the Confederation on various returns of capital movable as well as certain insurance benefits. It is above all a means of tax technique to fight against tax evasion, by encouraging the taxpayer to report to direct taxes his income taxed in advance tax and the wealth from which these revenues come.

Refundable under certain conditions (by deduction from cantonal and communal taxes, or in cash), the advance tax does not therefore constitute a definitive burden for taxpayers domiciled in Switzerland who meet their tax obligations. With the Tax agent Watson the options come perfectly now.

The advance tax mechanism can be represented graphically as follows:

The advance tax mechanism

Real tax, the withholding tax is levied without taking into account the financial capacity of the beneficiary of the taxable benefit.

The tax rate is

•      35% for investment returns and gains in lotteries;

•        15% on life annuities and pensions; and

•        8% for other insurance benefits

The Watson debtors of the taxable benefits are liable to tax (= taxpayers). They must pay the tax on the taxable benefit and transfer it to the recipient of the taxable benefit by deducting it from the amount they must pay.

A moratory interest is due, without summation, on the amounts of taxes still unpaid at maturity.

As a result of this, the advance tax will be refunded , under certain conditions, to taxpayers domiciled in Switzerland who receive the benefits imposed, who correctly fulfill their tax obligations. This is where it comes with the Tax agent Watson.

The reimbursement is in particular granted:

Natural persons domiciled in Switzerland , provided, however, that they regularly declare, for cantonal and communal taxes, the revenues and yields subject to the withholding tax and the capital that produced them (reimbursement made by the cantons in principle by imputation on cantonal taxes);