In Switzerland, foreign workers who do not yet hold a C-permit typically have their income taxed at source (Quellensteuer). While this system simplifies tax collection, it often limits the taxpayer’s ability to claim various deductions and allowances available under the ordinary taxation regime. However, the Swiss tax system offers a solution: the Antrag auf nachträgliche ordentliche Veranlagung (Request for Subsequent Ordinary Assessment), commonly abbreviated as nOV.
This rectification request allows source-taxed individuals to transition, for a given tax year, into the full assessment process, thus enabling them to claim deductible expenses, declare additional income, and potentially receive a tax refund. This guide explores when and how to file the request, eligibility criteria, documents required, deadlines, and the potential benefits and risks.
Understanding Source Tax vs. Ordinary Assessment
Employees taxed at source have their tax deducted directly from their monthly salary by their employer and remitted to the tax authority. This is intended to cover the individual’s full tax obligation. However, the Quellensteuer system uses standardized rates based on limited information, such as marital status and number of children.
Ordinary tax assessment, by contrast, is based on a comprehensive annual tax return that takes into account all forms of income, wealth, debts, and a wide range of deductions. The nOV allows taxpayers under the source tax regime to opt into this more nuanced system, voluntarily or due to a legal requirement.
Who Can File an nOV Request?
Individuals taxed at source may submit an nOV request if they meet one or more of the following criteria:
- Your annual gross salary exceeds CHF 120,000 – in this case, the nOV becomes mandatory.
- You have significant deductible expenses (e.g., pension contributions, childcare costs, professional development, donations, etc.) that are not accounted for in source tax.
- You have additional taxable income not subject to withholding (e.g., investment income, foreign earnings, real estate).
- You wish to declare wealth (e.g., real estate or financial assets) or debts to reduce your tax burden via deductions.
What Are the Benefits of Filing an nOV?
The main advantages of opting for ordinary tax assessment through an nOV include:
- Access to a broader range of tax deductions
- Ability to declare and deduct Pillar 3a contributions
- Potential tax refund if the actual burden is lower than the source tax rate applied
- Declaration of multiple income sources with proper adjustment
- Filing jointly with a spouse, which can result in favorable tax treatment
Deadline and Filing Process
The nOV must be submitted by March 31 of the year following the tax year in question. This deadline is strict and cannot be extended under normal circumstances.
Example: If you want to file an nOV for tax year 2024, the deadline is March 31, 2025.
Steps to File:
- Contact your cantonal tax office or visit their online platform.
- Download or complete the official request form for the nOV (titles and formats vary by canton).
- Submit the form either electronically (if your canton supports it) or in paper form by post.
- Once approved, you’ll receive a full tax return form package from your cantonal tax authority.
- Complete the full return, including annexes for wealth, deductions, and additional income.
- Submit supporting documents to validate deductions.
Required Documents for the nOV and Return
Once your nOV is accepted and you proceed with a full return, prepare the following documents:
- Lohnausweis (salary certificate)
- Proof of 3a pillar contributions
- Bank statements (Swiss and foreign)
- Mortgage and loan interest statements
- Rental income or real estate ownership details
- Insurance premium confirmations
- Childcare expense invoices
- Professional training receipts
- Charity donation receipts (for registered organizations)
- Proof of medical expenses (if significant)
What Happens After You File?
Once your ordinary assessment is filed and accepted, you will receive a tax decision (Steuerveranlagung) showing:
- Your total taxable income and wealth
- Approved deductions
- Taxes due or refundable after crediting source tax already paid
If the result is favorable, you may receive a refund of overpaid taxes. If unfavorable, you may be required to pay the difference.
Important Considerations and Risks
- Irrevocable: Once you file an nOV for a given year, you are subject to ordinary taxation for that year. You cannot revert to source taxation for the same period.
- Possible additional tax due: If deductions are fewer than expected or your income is higher than assumed, the final tax could exceed the amount withheld at source.
- Obligation to declare wealth: The full assessment includes cantonal wealth tax, which is not part of the source tax calculation.
- Time commitment: Completing the full tax return requires careful documentation and often assistance from a tax advisor.
How to Maximize the Benefits of an nOV
- Calculate your potential deductions before filing the request
- Use online tax simulators offered by cantons like Zurich, Geneva, and Vaud
- Seek fiduciary advice for complex income situations
- Organize and digitize receipts and certificates year-round
Special Cantonal Considerations
While the federal process is standardized, cantonal differences in documentation and filing portals exist. For example:
- Zurich: Use ZHprivateTax for electronic submission
- Geneva: GE Tax online system supports direct nOV requests
- Vaud: Offers both online and paper-based procedures
Make sure to consult your specific canton’s tax authority website for exact forms and instructions.
Conclusion
The Antrag auf nachträgliche ordentliche Veranlagung (nOV) is a powerful tool for source-taxed individuals in Switzerland to reduce their tax burden, claim rightful deductions, and align their tax obligations more closely with their actual financial situation. While the process requires proactive planning and detailed documentation, the potential tax savings often justify the effort. If you believe you’re paying too much in source tax or have complex financial circumstances, consider filing an nOV before the March 31 deadline—and take control of your tax outcome.
