Tax withheld directly from salary by the employer and paid to the tax authority, instead of the employee filing an ordinary tax return.
In Switzerland it applies mainly to foreign workers without a C permit, and to cross-border commuters. The employer is responsible for deducting the right amount, using the scale of the canton concerned, and for paying it over.
Source tax should not be confused with withholding tax (impôt anticipé), which is levied on investment income and is a different tax entirely.
