B permit holders (Aufenthaltsbewilligung) pay withholding tax (Quellensteuer) by default — deducted from salary monthly by their employer. If gross annual income exceeds CHF 120000, filing a full ordinary tax return (NOV) is mandatory. Below this threshold, filing is optional but often financially beneficial. Source: FTA — Taxes in Switzerland.
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What is a B permit?
The B permit (Aufenthaltsbewilligung / autorisation de séjour) is a temporary residence permit for foreign nationals employed in Switzerland, typically valid for 1 year and renewable. It is the most common permit for expats in Switzerland.
Key characteristics:
- Usually tied to an employment contract
- Renewable annually (after 5 years of continuous residence, eligible to apply for C permit)
- EU/EFTA citizens: 5-year B permit directly; non-EU: 1-year B permit
How B permit taxation works
Default: withholding tax (Quellensteuer)
Your employer deducts withholding tax from your gross monthly salary and pays it directly to the cantonal tax authority. No action required from you — it happens automatically.
Your tariff code (assigned by the tax authority) determines the rate:
| Code | Situation |
|---|---|
| A | Single, no children |
| B | Married, one income |
| C | Married, both partners work |
| H | Single parent |
Check your payslip monthly — the code must reflect your actual family situation. Wrong codes lead to under- or over-payment.
The CHF 120000 threshold (NOV obligation)
Since January 1, 2021, a federal rule applies uniformly across all cantons:
If your gross annual employment income exceeds CHF 120000, you must file a Nachträgliche Ordentliche Veranlagung (NOV) — a subsequent ordinary tax return.
This applies to:
- Base salary alone over CHF 120000
- Base salary + bonus combined over CHF 120000
- Salary + RSU vesting value combined over CHF 120000
The NOV is in addition to — not instead of — withholding tax. Your employer continues deducting withholding tax throughout the year. The NOV then reconciles your actual tax liability and you pay the difference (or receive a refund).
When you SHOULD voluntarily file the NOV
Even if your salary is below CHF 120000, requesting the NOV makes financial sense if you have significant deductions:
| Deduction | Max amount | Typical saving |
|---|---|---|
| Pillar 3a | CHF 7258/year | CHF 1,500–2,500 |
| Mortgage interest | 100% of interest paid | Varies |
| Commuting costs | CHF 0.70/km or actual PT cost | CHF 500–2,000 |
| Childcare | Up to CHF 25500/child | CHF 3,000–8,000 |
| Professional training | Up to CHF 12000 | CHF 1,500–4,000 |
| Health insurance premiums | Lump sum CHF 2800 (single) | CHF 500–900 |
Rule of thumb: If your total deductions would be more than CHF 4,000–5,000 above the standard withholding allowance, the NOV will likely result in a meaningful refund.
Step-by-step: filing a NOV as a B permit holder
Step 1: Check your obligation or decision
- Income >CHF 120000? → Mandatory NOV
- Income <CHF 120000 but significant deductions? → Consider voluntary NOV
Step 2: Submit a request (if voluntary)
For voluntary NOV, submit a written request to your cantonal tax authority by March 31 of the year following the tax year. Example: For 2025, request by March 31, 2026.
If mandatory (>CHF 120000), you will typically receive a NOV notification from the tax authority automatically.
Step 3: Gather your documents
| Document | Source |
|---|---|
| Lohnausweis (salary certificate) | From employer — issued by end of January |
| Withholding tax certificate | Employer / cantonal tax authority |
| Bank statements (Swiss accounts) | Your bank |
| Foreign account statements | Your foreign banks |
| Pillar 3a certificate | Bank or insurance company |
| Mortgage interest certificate | Bank |
| Childcare receipts | Daycare provider |
Step 4: Complete and file the return
Use your canton's official software or Avenzo (available in English). Submit by the deadline (usually March 31 or extended deadline).
Step 5: Receive the assessment notice
The cantonal tax authority issues a Veranlagungsverfügung (assessment notice). Compare the final amount to withholding tax already paid:
- More tax owed: Pay the difference + interest
- Refund: The difference is paid to your account
What income is included in the CHF 120000 threshold?
The threshold applies to gross employment income (Bruttolohn) from Swiss sources. This includes:
- Base salary
- Annual bonus / 13th month salary
- RSU vesting income
- Company car benefit (if declared on Lohnausweis)
- Housing allowances declared as income
It does not include:
- Interest income (reported separately)
- Dividend income
- Foreign income
Common mistakes B permit holders make
- Wrong tariff code — not updating after marriage, birth of child, or spouse starting work
- Missing Pillar 3a deduction — not requesting NOV to claim it
- Not declaring RSU income — RSU vesting value must appear on Lohnausweis
- Missing the NOV deadline — March 31 is strict; extensions must be requested before the deadline
- Assuming withholding is always final — many B permit holders don't realize they can or must file
B permit vs. C permit — tax comparison
| B permit | C permit | |
|---|---|---|
| Tax method | Withholding tax | Ordinary assessment |
| Employer deducts | Yes | No |
| Must file annually | Only if >CHF 120000 | Yes, always |
| Can voluntarily file | Yes | N/A |
| Deductions automatic | No | Yes (on return) |
| Advance tax payments | No | Yes (quarterly) |
This guide does not replace individual tax advice. All information is provided without guarantee.
Frequently Asked Questions
B permit holders must file a Nachträgliche Ordentliche Veranlagung (NOV) if their gross annual employment income exceeds CHF 120000. This threshold includes base salary, bonuses, 13th month salary, and RSU vesting income combined.
Yes. Any B permit holder can voluntarily request the NOV. It makes financial sense if you have significant deductions — most commonly Pillar 3a contributions, mortgage interest, or high childcare costs — that are not reflected in the withholding tax formula.
The withholding tax paid throughout the year is credited against your final NOV tax bill. If your actual tax liability (with all deductions) is less than the withholding already paid, you receive a refund. If it is higher (e.g., large bonus, RSU income not fully captured), you pay the difference.
Yes. If your total gross income including bonuses exceeds CHF 120000 in a calendar year, mandatory NOV applies for that year — even if your base salary alone is below the threshold.
In most cantons, you will be jointly assessed under the ordinary assessment system (applying to the C permit holder), which means you both file a joint tax return. Withholding tax on your salary may be discontinued once joint assessment is established. Contact your cantonal tax authority to clarify.
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