Beginning in 2021, it will no longer be possible to file requests for withholding tax adjustments on account of additional deductions (e.g. pillar 2 buy-ins, pillar 3a contributions or debt interest). 2020 is the last tax year for which a withholding tax adjustment can be requested. For this reason, you should check with your tax advisor whether it still makes financial sense to pay into a pillar 3a account starting in 2021.
One change is that all withholding tax payers who live in Switzerland now have the option of a subsequent ordinary tax assessment. A request for withholding tax recalculation can only be made in isolated cases (e.g. if an incorrect rate was applied), but not to claim additional deductions. Additional deductions such as pillar 3a contributions can only be claimed under a subsequent ordinary tax assessment.
- If your gross annual earned income is at least CHF 120,000, you will continue to be subject to a subsequent ordinary tax assessment. Subsequent ordinary tax assessments will continue to be conducted until you are no longer liable for withholding tax.
- If your gross annual earned income is less than CHF 120,000, you can file a written request for subsequent ordinary tax assessment until 31 March of the year following the tax year. A request that has been submitted cannot be withdrawn and will apply until you are no longer liable for withholding tax. It is no longer possible to request a withholding tax adjustment.
- If you receive income that is not subject to withholding tax (e.g. returns from movable or immovable assets) in addition to your employment income, or if you have taxable assets (e.g. real estate), you were previously subject to a supplementary ordinary tax assessment. Beginning in 2021, a subsequent ordinary tax assessment will be mandatory in these cases for individuals who are liable for withholding tax.
As a subsequent ordinary tax assessment may drive up or cut your tax bill, your tax advisor should check whether it makes sense in your case to request a subsequent ordinary tax assessment, especially depending on your place of residence.