You’re a US person working in Switzerland, and you receive your first Swiss Salary Certificate; Certificat de Salaire in French or Lohnausweiss in German. Now what? Let’s decode it.

Some Swiss tax basics

• The taxable salary for Swiss purposes is different than the taxable salary for U.S. tax purposes.
• U.S. taxpayers must include both their contributions and their employer’s contributions to the Swiss pension plan in U.S. taxable income.
• Swiss social security (AVS/AHV) is not deductible.

What is the Swiss salary certificate?

Like a U.S. form W-2, Swiss employers provide their employees with an annual salary certificate that includes all relevant employment income received during the tax year. The Swiss salary certificate shares the same purpose as the W-2 but differs in presentation and detail.

How do you report your taxable wages?

Most U.S. taxpayers begin with Box 1 on their W-2. This box shows your U.S. taxable wages (and other compensation including taxable fringe benefits.)

The net salary on Line 11 of the Swiss salary certificate is the taxable amount for Swiss tax purposes, but not for U.S. income taxes.

Figuring your taxable compensation for U.S. tax purposes from the Swiss salary certificate is a bit more complicated.

To properly report your U.S. taxable compensation, add lines 8 (gross salary) to lines 13 and 14 (fringe benefits which are not taxable for Swiss tax purposes).

Find the employer’s contributions to the Pillar II, which will be found on a separate statement from the pension provider. Lastly, convert the total to USD using an exchange rate source approved by the IRS.

Need more help with your Swiss salary certificate? The International Tax Services team, with our branch office in Switzerland is here to help.