Switzerland stops 2.4 billion repayment: Germany's tax dream bursts!

Switzerland stops 2.4 billion repayment: Germany's tax dream bursts!

Vienna, Österreich - The Federal Tax Administration (EStV) has stopped reimbursement of CHF 2.4 billion to a German applicant. According to the ESTV, the application made in 2024 had formal errors and partially dilapidated claims. The decision illustrates the need for correct and timely applications for the recovery of the clearing tax. The tax assessed in Switzerland is 35 percent of capital income such as dividends and interest.

For foreign applicants, including people from Germany, the existing double taxation agreement allows that a maximum share of recovery of 20 percent of this tax can be asserted. Despite the initial plausibility of the application, the EStV determined defects that led to rejection when examined. Incorrect information in the online form and the failure of the legal deadlines were decisive factors.

recovery process and deadlines

The legal situation for reimbursement applications is clear: these must be submitted within three years after the end of the calendar year in which the taxable service was due. Since 2020, applications must be submitted via the EStV electronic portal for people based in Germany. Information on the reimbursement process is documented on the website of the ESTV .

domestic natural persons can apply for reimbursements from the tax authority of their canton of residence, while legal entities must work directly at the ESTV. Foreign persons can also assert tax claims if there is a corresponding double taxation agreement.

double taxation agreement with Germany

The existing double taxation agreement between Switzerland and Germany forms the legal framework for tax applications and reimbursements. Among other things, it regulates the avoidance of double taxation on various direct taxes and inheritance taxes. Numerous protocols and agreements that were closed between 1931 and 2010 underpin the legal foundations. Information on this agreement can also be found on the ESTV-page

The recovery of clearing tax is important for foreign investors, since it serves to secure the proper taxation of capital gains in Switzerland. For domestic taxpayers, there is the possibility to completely reclaim the clearing tax if the declaration is correct, while the conditions of the respective double taxation agreements apply to foreigners.

The case illustrates impressively how important the correct handling of tax requests is and what financial dimensions can be at stake in the event of errors.