Balance and flat tax rates

Balance and flat tax rates are used to simplify the accounting with the Federal Tax Administration (FTA). The reason is that the input taxes do not have to be determined.

Balance and Flat Tax Rates

The possibility of applying balance and flat tax rates greatly simplifies the accounting for taxable persons. However, they must fulfill two conditions in order to benefit from balance tax rates. First, the taxable annual turnover (including taxes) must not exceed 5.02 million Swiss Francs, and secondly, the due tax burden must not exceed 109,000 Swiss Francs. The tax rates vary depending on the industry, depending on how great the value creation is compared to the purchased raw materials. About one third of all SMEs in Switzerland can apply the SSS method. The accounting is done biannually. However, the taxable person must still display the usual VAT rate to customers for his products.

The balance tax rates are to be applied as multipliers in the calculation of taxes. This means that in the VAT accounting, the taxable rate including tax is declared and multiplied by the approved SSS.

The flat tax rate method (PSS method) applies to the community and related areas such as private hospitals, schools, associations, etc. Anyone who wants to settle accounts using flat tax rates or balance tax rates must inform the Federal Tax Administration in writing.

Further information on the topic of balance and flat tax rates can be found on the website of the Federal Tax Administration.