In the canton of Geneva, withholding tax is calculated using annual clearing. Each month, the employee’s withholding tax amount is deducted from his or her monthly wage. The periods of January to November are processed in accordance with a monthly clearing procedure. In December, the cumulated annual gross wage is calculated down to an average value, and the difference between the payments that have already been effected and the amount of withholding tax that is still due is calculated. This amount is deducted directly from the December wage.

Clearing does not take place if the employee has not been with the same employer for a full twelve months.