Our blog

Switzerland levies a value-added tax (VAT) of 8.0% on most products, with reduced rates of 2.5% and 3.8% for specific goods and services. Certain services and exports are exempt from VAT.

Switzerland encourages high-income foreigners who do not work with flat-rate taxation, by taxing living costs instead of worldwide income. From 2016, the tax base was increased to seven times the rental income and a minimum expenditure of CHF 400,000 was set.

Foreign companies become liable for VAT in Switzerland with an annual turnover of over CHF 100,000 and must settle accounts via a local fiscal representative. The fiscal representative minimizes administrative effort and accelerates the import of goods.

In Switzerland, companies must provide an audited annual financial statement depending on their legal form and size; large companies require a statutory audit. This ensures high trust among stakeholders and is considered a seal of quality.

Outsourcing payroll accounting relieves SMEs and allows focus on main tasks. External service providers take over payroll accounting and communication with authorities.

Foreign companies become liable for VAT in Switzerland with a turnover over CHF 100,000 and require a locally based fiscal representative. This representative takes over the tax registrations and enables the reclaiming of input taxes.

The audit office must be independent; in case of self-review risk, organizational measures are necessary (Art. 729 Para. 2 CO). Clear separation of accounting and auditing required.

A sole proprietorship cannot be directly converted into a GmbH or AG in Switzerland, but requires first the liquidation and re-establishment. For a lawful conversion, assets must be higher than liabilities and a conversion balance sheet must be created.

An in-kind acquisition occurs when company founders commit to acquiring assets for consideration after establishing a company. This differs from a cash foundation and includes significant purchases essential for the foundation.