B. Wage tax or income tax

What is the difference between wage tax and income tax?

As a rule, the following applies: Employees and pensioners pay wage tax, self-employed persons pay income tax. Wage tax differs from income tax solely in the method of collection. As a rule, the tax scale is the same. For employees there are, however, additional tax deductions, special tax exemptions and particular stipulations regarding the taxation of certain “miscellaneous remunerations”.

All employers must deduct the wage tax and pay the amounts due to the tax office by the 15th day of the following month. Rz 1194–1202a

Income tax is collected through an assessment procedure. This requires an income tax return to be filed with the tax office. Income tax is then assessed on the basis of this declaration, and an income tax assessment notice is issued. An income tax assessment also considers any income from employment. Wage tax already withheld by an employer is then credited to income tax.

Even if only income from employment is received, there is generally an income tax assessment (please refer to the chapter on “Employee tax assessment”, page 160).