Our blog

The equity of a company is charged with imputed interest in accounting to simulate comparable conditions with an investment in the capital market. Imputed interest is not part of the profit and loss statement, but is essential for internal calculations such as cost accounting and investment decisions.

Self-employed individuals must record investments either directly as expenses or manage them as assets in order to depreciate them. The latter allows for annual depreciation, with the maximum amount being determined at the cantonal level.

Costs of debt are directly based on lender interest rates, whereas equity costs require a calculation using the CAPM, which utilizes the risk-free interest rate, market risk premium, and company-specific beta.

Holders of shares or common shares in a GmbH or AG must list these and any distributions in detail in their tax return. Distributions are subject to withholding tax, while participations must be stated in the securities directory.

People with dual residence are subject to taxation in Switzerland and another state; double taxation agreements prevent double taxation. Switzerland has 53 double taxation agreements, of which 46 are active to facilitate economic traffic.

Annual financial statement audits identify significant errors, where "significance" includes both quantitative sizes and qualitative influences. The determination of these limits affects the scope and cost of the audit.

Domiciliary companies in Switzerland are only allowed to engage in administrative activities and are subject to a ban on business operations. They enjoy tax privileges as revenues from abroad are tax-free.

Switzerland levies an emissions charge on equity such as stocks and cooperative shares; exemption limit for incorporations/capital increases at 1 million francs. Abolition of the charge from tax reform temporarily stopped due to federal financial concerns.

Shell companies can be used for legal purposes such as asset protection and business confidentiality or illegal activities such as tax evasion. In Switzerland, especially in Zug, there are still around 50,000 such companies, although the pressure to abolish them is increasing.