Subsequent ordinary assessment (TOU)

Withholding tax deducted by your employer includes flat-rate deductions. However, you are unique, and these flat-rate deductions do not necessarily match your actual situation. You therefore have the option of claiming actual expenses (meal and travel costs, property maintenance costs, health insurance, medical expenses, donations, etc.): the TOU status (formerly quasi-resident). To determine your eligibility, a full, individual analysis is essential. It identifies the most advantageous taxation method between a withholding tax rectification and the TOU status.

Background

A Federal Supreme Court ruling of 26 January 2010 (ATF 136 II 241) allows people domiciled abroad, or foreigners residing in Switzerland without a C permit, to claim actual deductions. Claiming actual expenses is commonly known as quasi-resident status.

Conditions for granting TOU status (formerly quasi-resident)

To qualify for quasi-resident status, 90% of worldwide income must come from Swiss sources (from 1 January 2021) and be taxed in Switzerland. The amounts taken into account to determine this ratio are:

• Gross income from employment (salary, allowances, bonuses, etc.)
• Interest (returns on bank accounts and investment funds, etc.)
• Property income (gross rental value, rents received, etc.)
• Income from benefits (pension, alimony)
• Any other income (secondary earnings, family allowances, sublet income, etc.)

Steps to claim actual expenses

If you meet the conditions and the deductions are more advantageous than a simple rectification, you must take the following steps:

Step 1: the request (mandatory before 31 March)

1. 1 Fill in the withholding tax rectification form (online or paper) and tick point 2 to claim actual expenses.
2. * Submit the request to the Tax Administration.

You will receive (on average within 2 to 4 weeks) an explanatory letter and everything needed to complete your tax return.

*Once the request has been received by the Geneva Cantonal Tax Administration, it can no longer be cancelled, even if it generates additional tax.

Step 2: the tax return

To complete the tax return, go to the dedicated page.

Did you know?

A quasi-resident request is not a procedure to take lightly. Once you have submitted the request, you can no longer go back. If the newly calculated tax turns out to be higher than the withholding tax deducted, you must pay the difference.

Our advisers are here to carry out a precise review of your situation. We guide you towards the most advantageous taxation method so that you maximise your tax refund.