Anticipatory tax The tax rate is 35 per cent, levied on income from capital investment, money prizes paid by Swiss lotteries, and with a reduced rate of 15 and 8 per cent on certain insurance payments. Source: Dessemontet, F. & Ansay, T. (2004), Introduction to Swiss Law, The Hague: Kluwer Law International, pages 223/224. The federal anticipatory tax was introduced in 1944 with the dual purpose of fighting internal tax fraud by requiring taxpayers to declare their investments and the income they obtain from them, and of taxing the income from capital invested in Sitzerland by persons living abroad. ... The anticipatory tax is withheld at source. In exceptional cases, for example in case a company transfers its place of effective management abroad, the payment may be replaced by a declaration of the income to the Federal Tax Administration. The tax rate is 35 per cent, levied on income from capital investment, money prizes paid by Swiss lotteries, and with a reduced rate of 15 and 8 per cent on certain insurance payments. Beneficiaries of such income who are resident of domiciled in Switzerland can claim a refund of the tax, provided that they have accurately declared the value of the investment and the income in the tax returs. ... In case of non-declaration, the tax is a final burden.