Withholding Tax (Verrechnungssteuer) Refund: Who Qualifies and What You Get

This scheme allows companies to claim back the withholding tax that was deducted from their dividends or interest payments.

👤Who it's for

This scheme is specifically for companies that have received payments in the form of dividends or interest. It applies if these specific payments were subject to the standard 35% withholding tax (often referred to locally as VSt). If your company has had these amounts deducted from its income, you may be eligible to request a return of those funds.

🎁What you get

The primary benefit is a refund of the withholding tax that was previously deducted from your company's earnings. By successfully navigating the declaration process, you can recover the tax amount that was withheld from your dividends or interest, ensuring your company retains the full value of its income.

💰What it costs you

While the refund itself is a recovery of funds, obtaining it requires a significant investment of administrative effort. You will need to provide complex documentation to serve as formal proof of ownership for the assets that generated the income. This administrative burden involves gathering specific records that satisfy the requirements of the tax authorities to prove that your company is the rightful recipient of the funds.

⚠️The catch to know

The most important thing to monitor is the strict deadline for your submission. You must complete your declaration and file your request within a three-year window. If you miss this timeframe, the opportunity to reclaim the money is lost, and you will not be able to claim the refund at a later date.

📝How to apply

1. Compile all the necessary documentation required to prove your company's ownership of the assets.
2. Complete the formal declaration process required for withholding tax refunds.
3. Ensure all filings are submitted before the three-year deadline expires.
4. Use the official portal to manage your submission: https://www.estv.admin.ch