How are RSUs, share options and equity compensation taxed in Switzerland?
RSUs, share options and other equity compensation are generally taxed as employment income in Switzerland. Restricted Stock Units (RSUs) are typically taxed when they vest, while share options are usually taxed when they are exercised. If you moved to or from Switzerland during the vesting period, only the portion relating to your Swiss working period may be taxable in Switzerland. The tax treatment depends on your equity plan, vesting schedule and tax residency.
Dear taxum, my employer gives me shares and options as part of my salary. Do I declare those?
Yes. And the timing of when they are taxed is where it gets specific.
In Switzerland, equity compensation is treated as employment income - not a capital gain. The taxable event generally occurs at vesting for restricted stock units, and at exercise for options. The value at that moment is added to your income for the year.
What complicates this for expats is that the taxable portion is usually calculated on a pro-rata basis - based on how much of the vesting period was spent in Switzerland. If you received the grant before moving here, or plan to leave before it vests, the Swiss portion is what matters. The rest may be taxed elsewhere.
These details are almost never handled correctly without specific attention. The grant documents, the vesting schedule, and your Swiss residency history all feed into the calculation.
I have seen assessments where equity was simply left off the return entirely. And assessments where it was included but calculated incorrectly.
The employer's payslip does not always make this visible. That is precisely why it needs looking at separately.
We also have a podcast discussing this very topic. Listen to it on all podcast platforms or youtube, links in the comments.