Declare, credit, and claim Back
Dividends are a key component of investment returns. But what happens with withholding tax? When dividends are paid out, a portion is often withheld at the source.
The crucial question is how and under what conditions this tax can be reclaimed.
In Switzerland: Withholding tax serves a declaratory purpose. If you correctly report your income, you can reclaim the full amount.
Internationally: Many countries impose withholding tax on dividends paid to foreign investors. To avoid double taxation, you can claim a tax credit in your Swiss tax return – but only for the portion that cannot be reclaimed directly from the country of origin.
Taxed at source in Switzerland? The reclaim is not automatic. If your investment income is subject to withholding tax, you must file a separate declaration to recover it.
Need help with reclaiming withholding tax? The Swiss Federal Tax Administration publishes country manuals, outlining the exact process for different jurisdictions. More details here: Country-specific tax information