The Swiss cantons can set the income tax at their own discretion and also determine the deadlines for filing the tax return themselves. The canton of Schwyz, known for the legendary Swiss pocket knives of the Victorinox brand, is one of the smaller cantons. It has an area of 908 square kilometers. In July 2021, the canton had 162,537 inhabitants. The canton has 30 communes. The capital of the canton is Schwyz. Canton Schwyz is one of the cantons with the lowest income tax rates. The income tax rate is significantly below the average of the cantons. Anyone who has reached the age of 18 is required by the cantonal tax administration to submit a tax return each year.
Tax rate in the canton of Schwyz
At 25.3 percent, the income tax rate in the canton of Schwyz is exceptionally low and well below the average for all cantons, which is 33.6 percent.
This puts the canton of Schwyz on a par with Nidwalden and Uri. The income tax rate is lower only in Obwalden at 24.3 percent, Appenzell Innerrhoden at 23.8 percent and Zug at 22.2 percent.
The inhabitants of the Canton of Schwyz are not only burdened with taxes by the Canton. The federal and local governments also levy taxes. Taxes vary among the municipalities, as the municipalities set their own municipal tax rates. They report the municipal tax rates to the cantonal tax administration. Those residents who belong to the church must also pay the church tax.
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In addition to income tax, a wealth tax is levied on all assets. It is calculated on the total assets in per thousand.
Unlike in other Swiss cantons, inheritance and gift taxes are not levied in Canton Schwyz.
Address and contact of the Tax Administration of the Canton of Schwyz
Every year, the cantonal tax administration of the Canton of Schwyz asks residents who are at least 18 years old to submit a tax return. It has the following web address: https://www.sz.ch/behoerden/staatskanzlei-departemente/finanzdepartement/steuerverwaltung/steuerverwaltung.html/72-416-387-382-3151-3153
The address of the Cantonal Tax Administration is:
Tax Administration Schwyz
Bahnhofstrasse 15
6430 Schwyz
In addition, there is also a post office box address to which written applications can be submitted:
Tax Administration Schwyz
PO Box 1232
6431 Schwyz
Contact is also possible by e-mail, telephone and fax. The website of the cantonal tax administration lists the contact options. You can submit the tax return online. Questions about the tax return and deadlines can also be answered by the relevant municipal office.
Tax software accepted in the canton of Schwyz
As in all Swiss cantons, the tax return can also be submitted in digital form in the canton of Schwyz. Facilitation in the preparation of the tax return is provided by the tax software. Each canton accepts different tax software. In the canton of Schwyz, the tax software eTax.SZ is accepted, which can be used online on the website of the cantonal tax administration. It is also available for download free of charge.
Up to 20 tax returns can be submitted without signatures using this tax software. If required, the tax return can also be printed out, signed and sent to the cantonal tax administration by mail together with the supporting documents. The software producer Ringler Informatik helps with all questions concerning the use of the tax software. The website of the cantonal tax administration lists the contact details.
n order to avoid mistakes in the tax return and save time, you can consult a tax advisor.
Deadlines for filing the tax return in the canton of Schwyz
Different deadlines apply in the individual cantons for the submission of the tax return. In the canton of Schwyz, the tax return must be submitted by March 31 at the latest. It is always submitted in the current year for the previous year. The tax return for the year 2022 must therefore be received by the cantonal tax administration by March 31, 2023 at the latest.
An extension of the deadline can be requested online via the website of the cantonal tax administration if the March 31 deadline cannot be met. In the application for the extension of the deadline, various data are required:
- Tax period
- PID number
- Date of birth
- required deadline
In addition, a security question must be answered before the application is sent. An extension of the deadline is possible until December 31 of the current year. A fee is not charged for the extension of the deadline. If a deadline extension has already been granted and this deadline cannot be met, a new deadline extension can be requested until the end of the deadline extension already granted.
What are the consequences in the canton of Schwyz if the deadline is not met or no tax return is filed?
If the deadline for submitting a tax return is not met, taxpayers receive a reminder from the cantonal tax administration. If the taxpayer does not respond to the first reminder within eight days, he will receive a second reminder. A fee is not charged for the reminder.
However, taxpayers are fined. The amount of the fine is determined depending on the income of the taxpayer and can be up to CHF 1,000. In serious cases, if a tax return is repeatedly not submitted, or if tax evasion is suspected, a fine of up to CHF 10,000 may also be levied.
Possibility of payment relief for the tax in the canton of Schwyz
Taxpayers who are experiencing payment difficulties can submit an application for deferral or payment in installments of the tax to the relevant municipal office online via the website of the cantonal tax administration. Installment payment can only be granted over a period of one year and in case of financial hardship. Proof of financial hardship may be required.
What is tax-free in the canton of Schwyz?
Various income is tax-exempt in the Canton of Schwyz. This includes the pay of the militia fire department up to CHF 5,000 per year, the pay for military and protective service and the pocket money for civilian service. Winnings from licensed money games up to CHF 1 million per year are also tax-free. Winnings from small games and lotteries are also tax-free. Winnings from lotteries and games of skill that serve to promote sales are tax-free up to CHF 1,000 per year.
What is tax deductible in the canton of Schwyz?
Various expenses are tax deductible in the canton of Schwyz:
- Measures under Covid 19 for home office as professional expenses
- Travel between home and work up to CHF 8,000 per year
- other professional expenses such as professional literature, private study or professional clothing amounting to 20 percent of the net salary, maximum CHF 6,900
- Maintenance and repair costs for private real estate
- Premiums for health, accident and life insurance as well as interest on savings
- Sickness and accident costs
- Special deduction of CHF 2,100 per year in the case of employment of both spouses living separately
- Costs for third-party care of children up to the age of 14 up to CHF 6,000 per child
- Membership fees and donations to political parties up to CHF 6,000 per year
- Costs for education and training up to CHF 12,000 per year
- Stake costs on winnings from cash games of 5 percent, up to CHF 5,000 per game and up to CHF 25,000 per year