Tax glossary
The language of Swiss tax returns, translated.
Veranlagungsverfügung, Eigenmietwert, Ermessensveranlagung: Swiss tax law is full of words you never meet in everyday life — and in a second language they turn a simple question into a real headache. Here you will find what each term means, what matters and what it actually changes in your own case. 35 terms, each with an example.
Terms starting with C
Cantonal and municipal tax
Cantonal and municipal tax is the income and wealth tax levied by the canton and your municipality: the cantonal rate schedule produces a basic tax amount, which is multiplied by the tax multipliers of the canton, your municipality and, if applicable, your church.
Charitable donations deduction
The charitable donations deduction lets you deduct voluntary gifts to tax-exempt charitable organisations based in Switzerland from your income — from CHF 100 a year and up to 20% of your net income.
Child deduction (Kinderabzug)
The child deduction is a fixed allowance that reduces your taxable income for each child — by CHF 9,300 for Zurich cantonal and municipal tax and CHF 6,800 for direct federal tax (tax period 2025).
Childcare costs (Drittbetreuungskosten)
Childcare costs are the documented fees you pay for third-party care of a child under 14 — nursery, after-school club or childminder — deductible up to CHF 25,000 (Zurich) and CHF 25,800 (federal) per child in 2025.
Terms starting with D
Debt interest (Schuldzinsen)
Debt interest is the interest you pay on private debts such as mortgages or loans — it is deductible up to the amount of your investment income plus CHF 50,000.
Direct federal tax
The direct federal tax is Switzerland's national income tax on individuals; it is declared on the same form as your cantonal return, assessed and collected by the cantons, and there is no federal wealth tax.
Discretionary assessment
In a discretionary assessment the tax office estimates your income and wealth itself because no tax return was filed despite a reminder — and the estimate is usually far too high.
Terms starting with F
Filing extension
A filing extension (Fristerstreckung) extends the deadline for submitting your tax return beyond 31 March — you must request it before the deadline expires, and if you do so in time it is straightforward.
Final tax invoice
The final tax invoice is the definitive tax bill issued after your assessment: it calculates the tax you actually owe and offsets it against the payments and interest already booked.
Terms starting with I
Imputed rental value (Eigenmietwert)
The imputed rental value (Eigenmietwert) is the notional rent that homeowners pay tax on as income for a property they live in themselves — in return, mortgage interest and maintenance costs are deductible.
Inheritance and gift tax
Inheritance and gift tax is a cantonal tax on assets received through an inheritance or a gift; in the Canton of Zurich, spouses, registered partners and direct descendants are fully exempt.
Terms starting with M
Maintenance payments (Unterhaltsbeiträge)
Maintenance payments are regular payments to a divorced or separated spouse and for children under 18 — the payer can deduct them, and the recipient must declare them as income.
Marginal tax rate (Grenzsteuersatz)
The marginal tax rate is the share of tax you pay on the next franc you earn — or save on the next franc you deduct; because of progression, it is always higher than your average tax rate.
Medical expenses (Krankheitskosten)
Medical expenses are doctor, dentist, hospital and therapy costs you pay yourself; they are tax-deductible to the extent they exceed 5 percent of your net income.
Terms starting with P
Pension fund buy-in (Pensionskasseneinkauf)
A pension fund buy-in is a voluntary payment into your occupational pension (pillar 2) to close contribution gaps — the full amount is deductible from your taxable income.
Pillar 3a
Pillar 3a is the tax-advantaged, tied private pension scheme: contributions up to the annual maximum are fully deductible from taxable income — for 2026 that is CHF 7,258 if you have a pension fund.
Professional expenses
Professional expenses are the costs you incur through your employment — commuting, meals away from home, other work-related costs and training. They are deductible from your earned income.
Property gains tax
Property gains tax is a special tax on the profit from selling real estate; in the Canton of Zurich it is levied by the municipality and falls the longer you have owned the property.
Property maintenance costs
Property maintenance covers all value-preserving expenditure on a property — it is tax-deductible, either as a flat rate or at actual cost, and you may choose afresh in every tax period.
Provisional tax invoice
The provisional tax invoice is an interim tax bill based on an estimate and paid before the final assessment — the final invoice settles the difference later.
Terms starting with S
Salary certificate (Lohnausweis)
The salary certificate (Lohnausweis) is the annual statement your employer issues showing your salary, allowances and deductions for the calendar year — it is the foundation of every employee's Swiss tax return.
Securities register
The securities register is the schedule to your tax return that lists every bank account, custody account and shareholding with its balance and income — and it doubles as your claim for a refund of Swiss withholding tax.
Subsequent ordinary assessment
A subsequent ordinary assessment (NOV) is the procedure in which people taxed at source file a regular Swiss tax return; the tax already withheld from their salary is credited against the definitive tax calculated from it.
Terms starting with T
Tax allocation
Tax allocation is the process of dividing a taxpayer's income, assets, debts and interest between several cantons or countries, so that each one taxes only its share and nothing is taxed twice.
Tax assessment notice
The tax assessment notice (Veranlagungsverfügung) is the tax office's official decision setting your taxable income and assets — the 30-day deadline for lodging an objection starts running once it is delivered.
Tax at source (Quellensteuer)
With tax at source (Quellensteuer), your employer deducts tax directly from your salary and pays it to the tax office — it applies to foreign employees who do not hold a C permit (settlement permit).
Tax multiplier (Steuerfuss)
The tax multiplier (Steuerfuss) is the percentage by which the canton, municipality and church multiply the basic cantonal tax — in 2026, Winterthur’s municipal multiplier is 125 per cent and the cantonal multiplier 95 per cent.
Tax objection (Einsprache)
An objection (Einsprache) is the legal remedy against a tax assessment notice — it must be lodged with the tax office in writing, with reasons, within 30 days of delivery, and it is free of charge.
Taxable income
Taxable income is the amount to which the tax rate is applied — total income minus income-related expenses, general deductions and personal allowances.
Training and education costs
Training and education costs are self-paid costs for job-related courses, programmes and retraining, which you can deduct from your income up to an annual cap once you have an upper-secondary qualification or have turned 20.
Terms starting with W
Wealth tax
Wealth tax is levied on your net assets as at 31 December — assets minus debts. It is charged by the cantons and municipalities; the Confederation does not levy a wealth tax.
Withholding tax (Verrechnungssteuer)
Swiss withholding tax is a 35 percent federal tax deducted at source from Swiss interest, dividends and lottery wins — if you declare the income correctly, you get it back in full.
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