Quellensteuer Tariff Codes
Quellensteuer tariff codes are numerical codes issued by Swiss cantonal tax authorities that determine how much income tax you must withhold from an employee's salary. Each code corresponds to a specific canton, marital status category, and sometimes religious affiliation. You must obtain and apply the correct code from your employee's canton of residence—not your business location—when setting up payroll.
Quellensteuer (source tax) is the Swiss system of withholding income tax directly from wages. The tariff code tells your payroll software or accountant exactly what percentage to deduct based on the employee's personal circumstances.
Tariff codes are issued by cantonal tax offices and updated annually. A typical code looks like a four-digit number, sometimes with prefixes indicating canton abbreviations (e.g., ZH, BS, LU).
When You Need Quellensteuer Tariff Codes
You need a tariff code before the first salary payment. This happens during employee onboarding, regardless of Pensum percentage or contract type. The code depends on where your employee lives, not where your company operates.
Tariff codes change annually and reflect shifts in tax rates and thresholds. You'll need to update codes every January for all employees. Changes in marital status (marriage, divorce, registered partnership) also require a new code from the relevant cantonal office.
- Obtain code from cantonal tax authority (Steuerverwaltung) of employee's residence canton
- Required for all employed persons, full-time and part-time
- Applies to AHV/ALV insurable income only
- Used by payroll processor or in-house accounting
- Update required if employee changes canton residence
- Annual renewal typically required by 31 December
Your Obligation as Employer
Swiss law (ArG and cantonal tax codes) requires you to withhold and remit Quellensteuer correctly. You're responsible for holding the correct, current tariff code on file. If you apply a wrong code, you remain liable for unpaid taxes—the employee is not responsible.
The tax authority expects you to collect tariff codes proactively. Many cantons allow online retrieval or issue them automatically when an employee registers. Some require the employee to request one from their cantonal office and provide it to you.
- Withhold tax only based on valid tariff code you hold
- Remit withheld tax monthly to cantonal tax authority
- Keep tariff code documentation for 7 years
- Incorrect withholding remains your liability, not employee's
- Update code within 30 days of change in circumstance
- Verify code validity if employee disputes withholding
The Most Common Mistake
Many employers assume they can apply a 'standard' code to new hires and update later. In reality, using an outdated or incorrect code means you withhold the wrong amount, creating compliance issues at year-end tax reconciliation.
A second frequent error: applying the code for your company's canton instead of the employee's residence canton. If you're based in Zurich but hire someone in Valais, you must use the Valais code. Always confirm residence canton in writing during onboarding.
- Delaying tariff code collection until 'month 2' creates payroll errors
- Applying last year's code without checking annual updates
- Confusing employee's residence canton with business location
- Failing to update code after employee moves cantons
- Not documenting when code was obtained and applied
- Assuming employee will provide code—many don't understand they need one
Frequently asked questions
- Do I need a tariff code for a contractor or freelancer?
- No. Quellensteuer applies only to employed persons in an AHV/ALV-insurable relationship. Freelancers and contractors who issue invoices are not subject to source tax withholding at source.
- What if an employee refuses to provide their tariff code?
- You still cannot delay payroll. Most cantons allow you to retrieve codes online via the employee's name and canton. If that fails, contact the cantonal tax office. Withholding without a code is not an option—it exposes you to penalties.
- Does the tariff code change if my employee's Pensum increases?
- No. Pensum changes do not affect the tariff code. The code is tied to canton, marital status, and religious affiliation only. Your payroll system simply applies the same rate to the new salary amount.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.