In the canton of Valais, withholding tax is also calculated using a permanent tax declaration. This means that a flexible average is calculated. For each month, a percentage of the wage is withheld from the employee as tax. The withholding tax deductions are added at the end of the year.

Note that two separate types of withholding tax exist for the canton of Valais:
The liable employee must contribute taxes to the canton AND to the municipality. The employer is required to represent the separate types of withholding tax as separate wage types. Indicators for cantons and municipalities are stored in Fiscal Data CH infotype 0036. These are used to allocate the withholding tax to the appropriate cantonal tax office or municipality.