The standard withholding tax rate is 35%.
This rate is applicable only to dividends (including liquidation surplus), to interests earned on bank accounts, and to interests on bonds. There is no withholding tax on interests paid by private companies or on royalties and licence fees.
The withholding tax, which is payable 30 days after the dividend distribution, can be reduced substantially (in some cases down to 0%) in accordance with the many Tax Treaties concluded by Switzerland and with a general treaty with the EU (see Appendix 1).
The withholding tax retained by a foreign country in application of a Tax Treaty can usually be compensated with income tax due in Switzerland.