1. Position of the Swiss Federal Income Tax in the Tax System

Switzerland has a three-tier income tax system for individuals:

• Federal level: Direct Federal Income Tax (income tax only, no wealth tax).
• Cantonal level: Income and wealth taxes levied by each of the 26 cantons.
• Communal/municipal level: Income and wealth taxes levied by municipalities, usually as a percentage (multiplier) of the cantonal tax.

Il imposta federale sul reddito is therefore only one component of a Swiss resident’s total tax burden. It applies in addition to cantonal and communal income taxes, but follows largely harmonised principles across the country.

In practice, an individual files one single tax return with the competent canton. Based on this return, the authorities calculate:

• il imposta federale sul reddito, e
• il imposta sul reddito cantonale e comunale (and wealth tax at cantonal/communal level).

2. Legal Basis of the Federal Income Tax

The Swiss federal income tax for individuals is governed primarily by:

• Federal Direct Tax Act (DBG / LIFD): defines taxable persons, taxable income, deductions, tax rates and procedural rules for the Direct Federal Tax.
• Federal Constitution: grants the Confederation the power to levy the Direct Federal Tax, usually for limited periods renewed by popular vote.

The DBG applies to natural persons (individuals) and to certain entities. This guide focuses on individuals; corporate taxation is covered separately.

3. Who Is Taxable at Federal Level?

The Direct Federal Tax follows the same core concepts of residenza fiscale as the cantonal tax law. In very broad terms, individuals can be subject to federal income tax in Switzerland if they:

• sono resident in Switzerland for tax purposes (unlimited tax liability), or
• sono non residenti but earn certain Swiss-source income (limited tax liability).

3.1 Unlimited tax liability (tax residency)

An individual is typically treated as a resident for Swiss tax purposes if they:

• have their tax residence (domicile) in Switzerland, or
• stay in Switzerland on a long-term basis (e.g. continuous stay with the intention to settle).

Residents are subject to federal income tax on their reddito mondiale, subject to relief under double tax treaties and certain specific exemptions.

3.2 Limited tax liability (non-residents)

Non-resident individuals can be subject to federal income tax on:

• Swiss employment income (e.g. work performed in Switzerland),
• director’s fees and similar income from Swiss companies,
• income from Swiss real estate, and
• other specific Swiss-source items defined by law.

For many non-resident employees, federal income tax is levied via ritenuta alla fonte (Quellensteuer).

4. What Is Taxed at Federal Level?

The Direct Federal Tax is a tax on the reddito netto of individuals. In simplified terms, it taxes:

• Reddito da lavoro (stipendio, bonus, benefit in natura),
• Self-employment income and business profits,
• Redditi da capitale (interest, dividends, certain income from funds),
• Redditi da locazione from real property, including imputed rental value of owner-occupied property,
• Certain pension and social security income.

From this gross income, various detrazioni are allowed (e.g. professional expenses, social security contributions, certain insurance premiums, interest on private debt, and specific social deductions). The result is the reddito imponibile a livello federale.

Some types of income are esente dall'imposta federale sul reddito (e.g. private capital gains on movable assets under specific conditions, inheritances and gifts), but may still be relevant at cantonal level (e.g. inheritance and gift taxes).

The detailed rules on taxable income, exempt income and deductions are covered in separate sub-guides within this Swiss Federal Income Tax Guide.

5. Assessment and Collection Procedure

Although the Direct Federal Tax is a federal tax, the autorità fiscali cantonali administer and collect it based on the individual’s annual tax return. Typically, the process is as follows:

1. The individual receives an annual tax return form from their canton of residence.
2. All income, deductions and assets are declared in this single tax return.
3. The canton processes the return and issues:
   • a federal tax assessment (Direct Federal Tax), and
   • separate assessments for imposte cantonali e comunali.
4. The taxpayer receives tax bills and pays the amounts due to the relevant authorities.

The exact scadenze, possibility of extensions, and prepayment rules can differ between cantons, even though the legal framework for the federal tax is uniform. These procedural aspects are explained in more detail in the dedicated page on Swiss Federal Tax Filing Obligations & Deadlines.

6. Interaction with Cantonal and Communal Taxes

While the Direct Federal Tax is governed by uniform federal law, each canton has its own tax legislation and tax rates. However, the Cantonal Tax Harmonisation Act ensures that:

• il basic tax base (definition of income, deductions, tax period, etc.) is broadly harmonised,
• il same declared income and deductions normally serve as the basis for both federal and cantonal taxes.

In practice, the taxpayer does not file a separate federal tax return. Instead, the canton shares the relevant information with the federal level and calculates both the:

• Imposta federale diretta, e
• Imposta sul reddito cantonale e comunale.

Nevertheless, there can be important differences between federal and cantonal taxation, such as:

• different deduction limits,
• different tax credits or social deductions,
• specific cantonal incentives (e.g. for families or real estate).

For a complete view of an individual’s Swiss tax position, the Direct Federal Tax must always be analysed together with the relevant cantonal and communal taxes.

7. International Aspects (High-Level Overview)

At federal level, international aspects of income taxation are strongly influenced by:

• Double tax treaties (DTTs) concluded by Switzerland,
• domestic rules on foreign tax relief and allocation of taxing rights,
• rules on ritenuta d'acconto and its refund or reduction under treaties.

These topics become particularly important for:

• inbound individuals moving to Switzerland,
• outbound individuals leaving Switzerland or working cross-border, and
• individuals with substantial foreign investment income.

Detailed information is provided in the dedicated guides on:

• Swiss Federal Tax Residency and Scope of Taxation,
• Swiss Federal Double Tax Treaties and International Aspects, and
• Swiss inbound and outbound individual tax planning.

8. Next Steps: Federal Income Tax Topics in Detail

This overview page is the entry point to the full Swiss Federal Income Tax Guide on taxrep.us. The following sub-pages provide a deeper analysis of the most relevant topics:

• Residenza fiscale federale svizzera – when an individual becomes tax resident and the scope of taxation.
• Taxable Income at Federal Level – detailed overview of employment, self-employment, investment and real estate income.
• Redditi esenti e non imponibili – including private capital gains and specific exemptions under federal law.
• Detrazioni fiscali federali – professional expenses, social deductions, pension contributions and other reliefs.
• Federal Tax Rates and Progressive Tariff – structure of the federal tax scale, including examples.
• Federal Tax Filing Obligations & Deadlines – who must file, deadlines, and interaction with cantonal procedures.
• Imposta alla fonte svizzera – overview of the federal withholding tax and refund mechanisms.
• International and Treaty Aspects – how double tax treaties interact with Swiss law.
• Penalties and Compliance – consequences of late or incorrect filings, and voluntary disclosure options.

Together, these pages provide a panoramica pratica e in lingua inglese of how the Swiss Direct Federal Tax works for individuals and how it interacts with the cantonal and communal tax systems.