Withholding Tax Correction: Rectification Request & Subsequent Ordinary Taxation (TOU)

Optimize your withholding tax in Geneva and recover what you are owed!

If you are a cross-border worker in Geneva, we can help you optimize your withholding tax and recover any overpaid amounts. Our team of expert tax advisors will guide you through the entire process, from submitting a rectification request to managing your French tax return.

We strive to optimize your withholding tax to ensure that you only pay what is fair. We also advise you on best tax practices to reduce your future withholding tax in Geneva, notably through Subsequent Ordinary Taxation (TOU).

Book an appointment now with Ruben Vazquez, our Geneva withholding tax specialist.

He will be happy to answer all your questions and help you obtain the maximum tax refund.

Contact us today to learn more!

What is a quasi-resident?

A quasi-resident is a person who does not live in Switzerland but earns 90% or more of their income in Switzerland. This means they do not have the same rights and obligations as a resident, particularly for tax purposes. Obtaining quasi-resident status grants access to various tax benefits that are normally unavailable to non-residents in Switzerland.

Why request a withholding tax correction (DRIS)?

When you are subject to withholding tax, your employer deducts tax from your salary based on your most recent withholding tax declaration.

You may request a withholding tax correction only to:

• contest the salary considered, the tax scale, or the applied rate, and/or
• request the inclusion of a dependent child if you are in a civil partnership or cohabiting (including French PACS), and/or
• request the inclusion of a child if you are married and living together, or in the case of shared custody (separation or divorce), and/or
• request the inclusion of a child receiving maintenance contributions or alimony, and/or
• declare your spouse’s actual income if you are taxed under scale C (married).

Since the reform of withholding tax (effective January 1, 2021), withholding tax corrections no longer allow you to take into account actual expenses or additional deductions (Pillar 3a contributions, pension buybacks, childcare costs, etc.).

If you meet the conditions, you must apply for Subsequent Ordinary Taxation (TOU) to claim these expenses and deductions and file a full tax return.

The TOU allows you to obtain the same corrections as a rectification request.

Find out if you are eligible for TOU (or quasi-resident status)!

Our team of tax experts specializes in managing and optimizing taxes, particularly for quasi-residents.

We will help you understand and navigate the Swiss tax system, maximizing your deductions and reducing your tax burden.

Get a tax assessment to take advantage of available deductions and optimize your taxes.

Take advantage of tax deductions

When should you apply for or declare Subsequent Ordinary Taxation (TOU) or quasi-resident status?

Only certain deductions are included on a lump-sum basis in withholding tax scales, such as:

• social security contributions (AVS, LPP),
• meal expenses, and
• health and accident insurance premiums.

Subsequent Ordinary Taxation (TOU) or quasi-resident status allows you to claim additional deductions and actual expenses such as:

• pension buybacks (2nd pillar),
• 3rd pillar A contributions,
• childcare costs,
• alimony payments,
• education and training expenses.

TOU may be mandatory, requested voluntarily, or applied automatically by the cantonal tax administration (AFC), depending on whether you live in Switzerland (resident) or not (non-resident / cross-border worker).

You may also make voluntary payments during the year in anticipation of additional tax due.

Subsequent Ordinary Taxation (TOU) for non-residents

TOU may either be requested or applied automatically by the AFC for taxpayers subject to withholding tax who do not live in Switzerland (non-residents).

TOU is available upon request if:

You qualify as a quasi-resident:

• At least 90% of your total annual worldwide income (including your spouse’s income, if applicable) is taxable in Switzerland.

Or

You fall into one of the following specific situations:

• You cannot claim certain deductions in your country of residence because your total income is too low.
• You wish to deduct foreign pension contributions that Switzerland must recognize under a double taxation agreement (DTA).

Your TOU request must be submitted each year if you wish to benefit from it again.

TOU is applied automatically if:

• you are employed in Geneva and
• you are also self-employed in Geneva, or
• you own real estate in Geneva, or
• you are married to a spouse who is self-employed or owns property in Geneva.

Automatic TOU is not applied every year automatically. Your situation is reviewed annually by the tax authorities.

Subsequent Ordinary Taxation (TOU) for residents

TOU is either mandatory or available upon request for taxpayers subject to withholding tax who live in Switzerland (residents).

The request or declaration for TOU only needs to be submitted once and does not need to be renewed every year.

TOU is mandatory if:

• you are employed in Geneva and
• your annual gross income (or your spouse’s income for married couples) exceeds CHF 120,000, or
• your annual income not subject to withholding tax exceeds CHF 3,000 (e.g., alimony received, housing benefits, health insurance subsidies, etc.), or
• you have taxable wealth, or
• you own real estate, or
• you are self-employed in Geneva, or
• you have another professional activity abroad, or
• your spouse (married couple) is not employed, or
• you have already been subject to TOU.

When the conditions for mandatory TOU are met, it must be declared. Once TOU applies to you, it remains mandatory in subsequent years:

• even if you no longer meet the initial conditions,
• even if you no longer wish to benefit from it,
• even in the event of separation or divorce.

TOU is no longer mandatory once you are no longer subject to withholding tax (for example, if you obtain Swiss nationality or a C permit).

TOU is available upon request if:

• you submit your request no later than March 31 following the tax year.

Our fees

Our fees for a TOU tax simulation (quasi-resident) are as follows:

• Single taxpayer, non-property owner: CHF 60
• Single taxpayer, property owner: CHF 80
• Married taxpayer, non-property owner: CHF 80
• Married taxpayer, property owner: CHF 90

These fees are designed to remain affordable while providing a precise and comprehensive analysis of your tax situation. Our goal is to help you make an informed decision about whether to apply for quasi-resident status in Switzerland. Please note that simulation results depend on the specific information you provide.

If you have any further questions about our services or the tax simulation process, feel free to contact us. We will be happy to assist you.