Tax & Permit C

If you live in Switzerland and you hold a C permit, you are required to submit your income tax return, also known as a “tax return”.

Swiss citizens and expats in possession of a permanent residence permit C must prepare their tax return every year, on the basis of which the taxes are then calculated.

Taxpayers are subject to taxation on three levels: municipal, cantonal and national. In the latter case it is the direct tax, levied by the cantons on behalf of the state.

Usually it is possible to pay municipal and cantonal taxes through installments distributed throughout the year. The number of these installments varies from one canton to another, with some providing the option of choosing a monthly installment or the balance in a single solution. At the end of the fiscal year, the administration establishes a definitive taxation to determine if the advances paid have been sufficient.

All income deriving from dependent or independent work and those referable to movable and real estate activities, as well as income from social security funds, are subject to taxation.

On the other hand, they are taxed differently and on a cantonal basis: inheritance or donations, insurance or other compensation, welfare benefits and a percentage of dividends. Furthermore, it is possible to subtract general deductions (deductions for insurance and social security contributions) and social deductions (deductions for children and dependent persons in need, etc.) from your income.

Also remember that, since the tax unit is the family, the tax return must be filed jointly. The income of legally registered spouses or cohabitants is added up whatever the property regime. This also applies to all holders of the type C permit.

Foreign citizens without a residence permit C, but married or cohabiting (legally registered) with a person of Swiss nationality or in possession of a type C residence permit must also complete the tax return with the ordinary procedure.