Withholding tax is a tax deducted directly from income.
The income of foreign employees is subject to withholding tax. The employer is obliged to deduct this tax directly from the income of his/her employee. Subject to withholding tax are people who are neither in possession of a Swiss passport nor a residence permit (C) nor married to somebody holding a Swiss passport or residence permit (C). The withholding tax rate takes the work and life situation of each individual domestic help into account. The rate is established by the Cantonal tax office.
In the case of the so-called simplified billing procedure for private employers of domestic employees the applicable withholding tax rate for all employees – independent of their origin and residence status – is 5%.
You will find more information on «Withholding tax» in our glossary under the keyword «Simplified billing procedure».