Procedural law: The withholding tax as a self-declaration tax

The withholding tax as a self-assessment tax imposes the filing and declaration obligations on the taxpayer. The taxable person himself must firstly recognise his tax liability and then fulfil his declaration, payment and reporting obligations without being requested to do so by the tax administration.

If a person is liable to pay tax, he or she must register independently with the FTA. In practice, however, this obligation to register plays a subordinate role, since domestic corporations are automatically registered by the FTA as persons liable to withholding tax when they are established with the constitutive entry in the commercial register or the corresponding publication in the SOGC.

A taxable person must submit the prescribed declaration to the FTA without being requested to do so when the withholding tax is due and at the same time pay the tax or submit the report replacing it.

When declaring investment income from investment accounts, there is a set of forms that must be used by taxpayers. A distinction must be made between the ordinary annual declaration and the declaration of extraordinary dividends and other non-cash benefits. While forms 103 (AG) and 110 (GmbH) must be used for the former, form 102 must be used for the declaration of extraordinary dividends and other monetary benefits.

Changes in the stock of capital contribution reserves must be reported using form 170, whereby different deadlines apply here for deposit and repayment.

In the case of interest on bonds and customer credit balances, it should first be noted that the concept of a bond in withholding tax law is broader than that of securities law: Accordingly, bonds are written acknowledgements of debt denominated in fixed amounts which are issued in a plurality of copies on similar terms for the purpose of collectively raising debt capital, collectively granting investments or consolidating liabilities and which serve the creditor to prove, enforce or transfer the claim. Each company must determine for itself whether it pays interest subject to withholding tax.

In the event of any breach of the procedural obligations, in addition to the additional payment of the taxes owed, interest on arrears in the amount of 5% as well as consequences under criminal tax law may be incurred.