Tax at source 2023 Geneva

Consideration of children up to 25 years old

Jacques Kocher
Leader Corporate Support Services West, PwC Switzerland

Between the end of November and mid-December 2022, the Geneva tax authorities issued the following documents (in French):

The result is a major change for the consideration of children in the determination of the withholding tax scale. Indeed, until the end of 2022, only children under the age of 18 could be considered as dependent children, this in contradiction with circular 45 according to which all children up to the age of 25 are considered as dependents (students or apprentices).

Employees subject to withholding taxes and having dependent children over the age of 18 had to apply to the Geneva tax authorities for rectification the following year and receive a refund of the tax overpayment.

In summary

This practice aligns with the federal directives of circular 45 and with the practice of all the other cantons.
The deduction of monthly withholding tax will correspond to the actual situation of the employees concerned and will correspond to the tax rules applied to employees subject to ordinary taxation.
There will no longer be excessive deductions during the fiscal year, followed by reimbursement the following year.
The employer must pay particular attention to the situation of the children of the employees concerned, in particular if no family allowance is paid to the employee. The risk of application of the wrong scale being with the employer, we recommend reminding employees taxed at source of their duty to inform within 14 days of an event involving a change in their personal situation and therefore in the tax scale.

Contact us

Jacques Kocher

Leader Payroll Services West, PwC Switzerland

Tel: +41 58 792 92 47

Tax at source 2023 Geneva

In summary

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