Your Swiss company declares a CHF 50,000 dividend. In an ordinary case subject to Swiss withholding tax, it does not transfer the entire CHF 50,000 to the shareholder: it retains CHF 17,500 for the Federal Tax Administration (FTA) and pays the shareholder CHF 32,500.
This 35% deduction is not necessarily a final cost. A refund depends on the recipient’s circumstances and compliance with the applicable conditions. The company and the shareholder each have their own obligations; one cannot fulfil the other’s obligations on their behalf simply by paying the tax.
At a glance
- The ordinary Swiss withholding tax rate on dividends within its scope is 35% of the gross amount.
- The company declares and pays the tax within the applicable deadlines; the shareholder separately claims any refund to which they are entitled.
- Form 103 covers, among other things, dividends on Swiss company shares; form 110 covers distributions on Swiss LLC interests.
- Filing the accounts can be compulsory even without a dividend. Article 21 of the Withholding Tax Ordinance distinguishes mandatory filing without a request from filing at the FTA’s request.
- Tax on a dividend is generally payable within 30 days after the dividend becomes due.
- A withholding tax refund does not remove the obligation to declare the gross dividend for income tax purposes.
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What is Swiss withholding tax for?
Swiss withholding tax is a federal tax designed, in particular, to encourage the declaration of certain income and assets. The entity owing the taxable payment deducts the tax and pays it to the FTA. The recipient must then meet the conditions for any refund.
For an individual resident in Switzerland who properly declares the relevant income and assets and qualifies for a refund, the deduction acts as a safeguard. For a recipient resident abroad, the relevant tax treaty and refund conditions may leave a final, non-refundable amount.
Do not confuse this tax with the tax deducted at source from certain employees’ wages, or with corporate income tax.
Which income and rates are covered?
The 35% rate applies, in particular, to taxable income from Swiss movable capital, including dividends, and to certain gambling and lottery winnings within its scope. Exemptions and thresholds depend on the type of income.
Different rates apply to certain insurance benefits: 15% for life annuities and pensions covered by the rules, and 8% for other insurance benefits within the regime. Insurance reporting has its own specific rules.
The 8% rate should therefore not be described as a general rate for lottery winnings. For an entrepreneur distributing profits from a Swiss limited company (SA/AG) or LLC (Sàrl/GmbH), the usual starting point is the 35% dividend rate.
Worked example: a Swiss limited company distributes CHF 50,000
The shareholders approve a gross dividend of CHF 50,000, with a clearly specified due date. The company records:
| Allocation of the dividend | Amount |
|---|---|
| Withholding tax: CHF 50,000 × 35% | CHF 17,500 |
| Net payment to the shareholder | CHF 32,500 |
| Total gross distribution | CHF 50,000 |
The shareholder declares the gross dividend of CHF 50,000, not just the CHF 32,500 received. If the conditions are met, the CHF 17,500 is refunded or credited under the applicable procedure. Ordinary income tax on the dividend still needs to be calculated.
The concept of economic double taxation explains why the company and its shareholder may be taxed in succession, independently of the withholding tax payment and refund process.
What if the company pays the entire amount to the shareholder?
If the company fails to deduct the tax, it cannot simply disregard the liability. It must examine whether it can recover the amount from the recipient and put the position right. If the company bears the tax itself and this constitutes an additional benefit, a gross-up calculation may be necessary.
Where CHF 50,000 was genuinely promised net and grossing up applies, the gross amount would be CHF 50,000 ÷ 65% = CHF 76,923.08, with withholding tax of CHF 26,923.08. This is not an automatic penalty for every mistake: it depends on who ultimately bears the tax and how the benefit is characterised.
Which form should you use: 103, 110 or 102?
Use form 103 for the Swiss withholding tax on income from Swiss shares, participation certificates and dividend-right certificates. It is used, in particular, for ordinary distributions by an SA/AG.
Use form 110 for income from the relevant interests in a Swiss Sàrl/GmbH. An LLC should not automatically choose form 103 simply because it is also paying a dividend.
Use form 102 for the monetary benefits covered by that form, such as relevant deemed distributions; it is not simply “the form for cooperatives”. Intragroup forms, including 106 and 108, address different situations.
Start with the FTA’s official list of forms, then use the online filing service where available for your situation. This avoids relying on an outdated template downloaded from a third-party website.
As an initial orientation:
| Situation | Form to consider |
|---|---|
| Ordinary dividend from a Swiss SA/AG | 103 |
| Ordinary distribution on interests in a Swiss Sàrl/GmbH | 110 |
| Monetary benefit within the scope of the form | 102 |
| Qualifying domestic intragroup notification procedure | 106, alongside the required distribution documents |
| Qualifying international notification procedure | 108, with the required authorisations and documents |
Access the current versions through the FTA’s list of forms, which also links to online services. Prepare the profit appropriation resolution, meeting date, gross amount, dividend due date and annual accounts. This table does not replace the conditions of each procedure or any additional supporting documents required.
Which deadlines apply?
Submitting accounts to the FTA and paying withholding tax are separate obligations. Their deadlines are not necessarily calculated from the same date.
Accounts and form 103 or 110: when must you file?
A Swiss SA/AG or Sàrl/GmbH may have to submit its accounts even if it pays no dividend. Under article 21(1) of the Withholding Tax Ordinance (in French) , documents must be filed without waiting for a request within 30 days after approval of the annual accounts if at least one of the following five situations applies:
| Article 21(1) provision | Condition to check |
|---|---|
| Letter a | Total assets on the balance sheet exceed CHF 5 million. |
| Letter b | The profit appropriation resolution gives rise to a taxable benefit. |
| Letter c | A taxable benefit became due during the financial year. |
| Letter d | The company is taxed under article 69 of the Federal Direct Tax Act or article 28 of the Tax Harmonisation Act. |
| Letter e | The company has benefited from a double taxation agreement concluded by Switzerland. |
The company submits its annual report or a signed copy of the annual accounts, together with the corresponding official statement: normally form 103 for an SA/AG and form 110 for a Sàrl/GmbH. The FTA explains these filing obligations.
In other cases, article 21(1bis) provides for submission of the documents at the FTA’s request. It would therefore be wrong to limit the obligation to dividend distributions. It would also be wrong to describe filing within 30 days without a request as an unconditional obligation for every SA/AG and Sàrl/GmbH.
Illustrative example: an SA/AG has total balance-sheet assets of CHF 6,000,000 and approves its accounts on 30 June 2026, with no dividend or other taxable benefit. It must submit the accounts and official statement by 30 July 2026 because its balance sheet exceeds CHF 5 million. The absence of a distribution does not remove this filing requirement; nor does the filing requirement create withholding tax where there is no taxable benefit.
Withholding tax payment: 30 days after the dividend is due
Withholding tax on a dividend is generally payable within 30 days after the taxable benefit becomes due. The bank transfer date does not replace the due date approved by the shareholders.
Illustrative example: the shareholders approve the accounts on 30 June 2026 and declare an ordinary taxable dividend due on 31 August 2026. The accounts and form must be filed by 30 July 2026 because this distribution falls within article 21(1)(b) of the Ordinance. The tax on the dividend must be paid by 30 September 2026.
If no due date is specified, the period runs from the distribution resolution or, if there is no resolution, from the distribution itself, under article 21(3). Simply delaying the bank transfer does not create a new due date.
Where filing without a request is mandatory, the absence of a reminder does not excuse non-compliance. The relevant late-payment interest rate is 4% for 2026. It is set annually and should not be treated as a permanent rate.
Can a notification replace payment?
In certain intragroup situations, a notification procedure avoids paying the tax and subsequently claiming a refund. Within Switzerland, form 106 covers, in particular, dividends from qualifying holdings of at least 10%, where the conditions are met.
This procedure is not available for every distribution to an individual shareholder. It requires the relevant declarations and, for certain international cases, the necessary authorisations. Our article on Swiss holding company taxation explains the role of participation relief alongside the withholding tax rules.
Before distributing profits, check the distributable earnings, shareholder resolution, due date, form and available cash. Our accounting team can prepare these elements alongside your annual accounts.
Prepare the dividend before transferring the money
Confirm the gross dividend, its due date and the correct declaration form before paying the shareholder. Budget for the withholding tax separately from the recipient’s ordinary dividend taxation, and keep the company’s filing obligations distinct from the shareholder’s refund claim.
Frequently asked questions
Does the 35% deduction replace income tax on my dividend?
No. Withholding tax and ordinary income tax are separate mechanisms. Declare the gross income and claim the refund to which you are entitled.
Should a Swiss LLC use form 103?
For the relevant income from Sàrl/GmbH interests, the designated form is 110. Check the exact nature of the benefit against the FTA’s list.
Is a refund automatic?
No. It depends on the claim and the statutory conditions. Payment by the company does not amount to a refund claim by the shareholder.
Must we file form 103 or 110 even without a dividend?
Yes, if one of the situations in article 21(1) applies, including a balance sheet exceeding CHF 5 million. The accounts and official statement are then due within 30 days after approval. In other cases, paragraph 1bis provides for submission at the FTA’s request. Having no dividend is therefore not enough, on its own, to determine the filing obligation.
Sources and updates
- Withholding Tax Ordinance: article 21(1), (1bis) and (3) (in French).
- FTA: Swiss withholding tax.
- FTA: mandatory filing.
- FTA: official forms.
- Canton of Geneva: claiming a withholding tax refund (in French).
- FTA: interest rates for 2026 (in French).
English editorial review: 22 September 2026. Tax information follows the French article’s documentary review of 20 September 2026.
Romain Prieur is a Swiss-qualified chartered accountant and the founder of Entreprendre.ch. With more than ten years of experience in audit and business advisory in Switzerland, he helps entrepreneurs with company formation, accounting and business taxation.
How do you claim a Swiss withholding tax refund?
Individuals resident in Switzerland
A refund is normally claimed through the cantonal tax return, including the securities schedule and required information. Correctly declare the gross income and corresponding assets.
Entitlement depends, among other things, on meeting the statutory conditions for the recipient and the declaration. An omission may jeopardise a refund. Certain negligent omissions can be remedied under the applicable conditions before the assessment becomes final; it would therefore be wrong to say that every mistake always causes an irreversible loss.
The ordinary claim deadline is three years after the end of the calendar year in which the benefit became due, subject to special rules. For a benefit due in 2026, this generally means 31 December 2029. Do not wait until then to prepare your return.
Swiss companies and recipients resident abroad
A Swiss legal entity follows the applicable federal refund procedure and must, in particular, properly record the income in its accounts. It does not simply use an individual’s securities schedule.
For a recipient resident abroad, examine the applicable double taxation agreement, country-specific forms, tax residence requirements and beneficial ownership conditions. A refund may be partial. A tax residence certificate alone does not establish compliance with every condition.