In which cases must form 103 be submitted?
Form 103 of the Federal Tax Administration (FTA) is used to declare withholding tax on income from domestic shares, participation certificates, and dividend rights certificates.
Legal basis and purpose
The withholding tax is structured as a self-assessment tax. The debtor of the taxable service is obliged to submit the corresponding declaration independently and on time to the ESTV.
Form 103 is used in particular for:
- the proper declaration of the withholding tax on investment income,
- the prerequisite for the registration procedure (in combination with form 106),
- as well as for zero or negative reports, provided there is a reporting obligation.
Filing requirement for total assets over CHF 5 million.
A particularly important – and in practice often overlooked – requirement concerns companies with total assets exceeding CHF 5 million:
Legal entities with a balance sheet total exceeding CHF 5 million are required to submit form 103., even if no dividends or benefits in kind were paid out. This obligation serves the ESTV's control and supervisory function and exists regardless of whether input tax liable to withholding tax was incurred in the relevant financial year.
Submission date
Form 103 must be submitted to the ESTV within 30 days of approval of the annual accounts by the general assembly.
Submission for dividend distributions
If a dividend or a benefit in kind is decided upon, Form 103 must be submitted to the ESTV within 30 days of the benefit becoming due. If the reporting procedure is applied (e.g. in the case of group relationships), Form 106 must also be submitted.
Consequences of non-compliance
Late or omitted submissions may have the following consequences:
- Loss of reporting procedure
- Subsequent collection of withholding tax
- Late payment interest
- Fines in accordance with the Withholding Tax Act
Conclusion
Form 103 is not only relevant in the context of dividend resolutions. Companies with a balance sheet total exceeding CHF 5 million are obliged to submit the form within 30 days of the approval of the annual financial statements, even without a distribution. Careful monitoring of the balance sheet total and general meeting dates is therefore essential to avoid missing deadlines and incurring tax risks.
