ARTICLE · 01 OCTOBER 2026

TaxPage - Withholding Tax Refund: A Small Difference With Costly Consequences

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Recent Federal Supreme Court rulings clarify when Swiss taxpayers forfeit their right to reclaim withholding tax on dividends and interest. The critical distinction between negligence and contingent intent determines whether the 35% withholding tax can be recovered, with substantial amounts at stake for those who fail to properly declare income and assets.

SwitzerlandTax

Regina Schlup Guignard

Introduction

Dividends from Swiss companies, as well as interest on bonds issued by Swiss debtors, are paid out to the beneficiaries at only 65%. The remaining 35% is remitted directly to the Swiss Federal Tax Administration (FTA) as withholding tax. It is then up to the taxpayer to reclaim the withholding tax from the FTA by filing a refund claim. However, anyone who fails to correctly declare the income (e.g. dividends, interest) or the corresponding assets in their tax return risks not only a supplementary tax assessment but also the loss of the refund. On a dividend of CHF 1’000, CHF 350 is at stake. Two recent Federal Supreme Court rulings show what impact the distinction between negligence and contingent intent (dolus eventualis) has on the refund of withholding tax.

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