Swiss Salary Withholding Tax Violates Free Movement of Persons Agreement with the European Union

The authors, in this article, discuss a recent decision of the Swiss Supreme Court wherein it was held that the denial of certain tax deductions under the Swiss salary withholding tax system applicable to non-residents employed in Switzerland is discriminatory insofar as a non-resident subject to the system is in a situation that is comparable to that of resident employees. The Swiss Supreme Court introduces the Schumacker doctrine of the European Court of Justice into Switzerland in this decision.