Moving to a C permit comes with an often-underestimated tax change: the end of withholding tax and the move to ordinary taxation, with new optimisation opportunities.
With a C permit, you leave the withholding tax regime for ordinary taxation, like a Swiss citizen. This change means a full annual tax return, but also opens access to a set of deductions not automatically included in the withholding scale.
| Withholding tax | Ordinary taxation (C permit) | |
|---|---|---|
| Return | Automatic deduction by the employer | Full annual tax return |
| 3rd pillar deductions | Not automatically optimised | Fully deductible on the return |
| LPP buy-backs | Limited effect without an ordinary return | Fully deductible |
| Actual professional expenses | Standard allowance built into the scale | Option to deduct actual expenses if more advantageous |
Watch out: the first ordinary tax return after a B permit can be a significant administrative change of pace. Preparing upfront (gathering supporting documents, anticipating provisional instalments) avoids cash-flow surprises.
Moving to a C permit is also the moment to review all your health and pension cover, often set up quickly on arrival and not reassessed for several years.
We support people moving from a B to a C permit in setting up their new tax strategy, coordinating the 3rd pillar, LPP buy-backs and available deductions.
No, it must be requested from the competent authorities once the residence-duration and integration conditions are met.
Yes, and it's the ideal moment to set up a full strategy (3rd pillar, LPP buy-backs) before administrative habits settle without optimisation.
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