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. […]
Most businesses in Switzerland, and Europe, are subject to some form of Value Added Tax (VAT). If the issuer of the invoice is based in Switzerland then the invoice needs to contain, at a minimum: The VAT number and the name & address of the provider of the good or service A true description of […]
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 […]
Any person who has a revenue that is subject to the payment of Swiss AVS / AHV 1st Pillar contributions is entitled to save with the 3rd Pillar, which could help to save on some taxes. For independent workers the limit is set at 20% of their net earnings, but at the most 40% of […]
Switzerland has an unusual tax arrangement which foreigners can take advantage of. The lump-sum taxation system is available in certain Cantons and allows private individuals to pay a fixed amount of tax every year based on certain criteria that are supposed to reflect how much the taxpayer is expected to spend rather than how much […]
For 2019 tax returns the official FTA exchange rates are: Income Fortune USD 1 = CHF 0.99365558 CHF 0.968374 EUR 1 = CHF 1.11247283 CHF 1.087 GBP 1 = CHF 1.26829753 CHF 1.282822 Foreign exchange rates are available here. Average monthly exchange rates are available herei. Daily exchange rates supplied by the […]
Since 1 January 2018 all companies that provide goods or services to Switzerland and which have a worldwide turnover of at least CHF 100,000 (about US$ 100,000) are required registered for Swiss VAT. These companies need to register with the Swiss Federal Tax authorities as soon as they begin their activities in Switzerland. In order […]
Every year Swiss companies must issue a standardized salary certificate to employees noting all taxable benefits employees have received during the year. This catches a lot of perks, but there are exceptions that can be useful to know about. Some key benefits of value that an employer can give his staff (even when self-employed) and […]