For 2023 tax returns the official FTA exchange rates are: Income Wealth USD 1 = CHF 0.89880159 CHF 0.841624 EUR 1 = CHF 0.97165064 CHF 0.929700 GBP 1 = CHF 1.11706498 CHF 1.072875 Official foreign exchange rates as of 31 December 2023 are available here. In this list are also included rates to […]
In order to help finance the Swiss retirement system VAT rates are increasing from 1 January 2024. From a Swiss accounting perspective this entails certain points that need to be considered for entities that charge Swiss VAT. It will be important to consider whether the old or the new rate will need to be charged […]
An unusual aspect of Swiss Company accounting is the requirement to constitute a General Reserve (or Legal Reserve) from prior year profits. The Legal Reserve is different from other provisions and reserves in that it is a legal requirement to build up reserves in a company following a period of profitable trading. The General Reserve […]
For 2022 tax returns the official FTA exchange rates are: Income Wealth USD 1 = CHF 0.95497047 CHF 0.925228 EUR 1 = CHF 1.00481626 CHF 0.987450 GBP 1 = CHF 1.1791102 CHF 1.112933 Official foreign exchange rates as of 31 December 2022 are available here. In this list are also included rates to […]
Depending on certain criteria Swiss companies are required to appoint an an accredited Swiss auditor. Criteria to Avoid an AuditCompanies which employ on average fewer than 10 full time employees during the year can forego the audit of their accounts if the shareholders (or associates) agree to this (art. 727a Swiss Code of Obligations). Criteria […]
Accounting for VAT can take many forms. Here we make the distinction between The Standard Method and the Net-Rate Tax Method. Standard Method for VAT Can be used by all businesses operating in Switzerland. Any business with a taxable turnover exceeding CHF 100,000 per annum is required to register for VAT (this excludes for instance […]
Employee shareholdings (as well as stock options) is a well-known and attractive way of motivating and compensating employees, and of aligning their interests with those of other shareholders. This system has traditionally not been as widely used in Switzerland as in other countries, and a large reason for this has been some taxation traps. This […]
The advantage for a company of making provisions is that disclosed profit can then be reduced, and shareholders receive fewer dividends for distribution. This allows the company to keep money internally for its own growth. These reserves can then be used should the company come across a difficult year when this provision can be released. […]
CFO 1.0: The traditional role of the CFO has been in keeping accounting records up-to-date and on reporting what has happened. The CFO’s main responsibility was in delivering timely and accurate accounts. The Mindset is Operational and the Technology focuses on Reporting. CFO 2.0: With the advent of large amounts of data to process it […]
The Swiss Federal Government has already introduced a number of measures to assist businesses in Switzerland (a good summary is available in French from the RTS site). Some key aspects to take into consideration in different Cantons are: The suspension of interest payments for late payments of Cantonal & Communal taxes & a very softened […]