Taxes

The new Swiss source taxation law comes into effect on January 1, 2021, and regulates income taxes for domestic and foreign workers. Details and regulations are recorded in Circular No. 45.

As of January 1, 2021, new withholding tax regulations apply in Switzerland to strengthen legal certainty and address technological developments. Details are documented in Circular No. 45 of the ESTV.

Pay into the 3rd pillar or pension fund to reduce your taxable income. Costs for job-related further education up to CHF 12,000 are also deductible.

The city of Zurich has launched the online service "Managing Taxes," which allows residents to manage their taxes around the clock and retrieve payment information. The service promotes the self-management of tax data and is intended to reduce inquiries at the tax office and contribute to debt prevention.

A tax ruling is an advance binding information obtained from the tax authorities, which creates legal certainty and protects against criminal consequences. The validity of a tax ruling depends on an accurate presentation of the facts and does not provide protection against changes in legal norms after its issuance.

The Federal Court confirmed the cumulative deductibility of public transportation costs and bicycle flat rate for the commute, regardless of alternative transportation options. The Professional Expenses Ordinance allows a maximum travel cost deduction of 3000 francs and does not establish a ranking order between bicycle, bus, and walking.

Tax disputes between cantons often arise because it is unclear where a person's tax residence is located. The tax domicile is determined by the center of life and the intention of permanent residence.

The tax liability for items such as flatscreens or silver cutlery varies by canton in Switzerland and depends on whether they are considered tax-free household goods or taxable assets. In the category of capital investments, items must be declared in the tax return, otherwise back taxes and penalties may be imposed.

Tax Compliance helps companies comply with tax regulations and avoid tax evasion. It includes organizational measures and intelligent tax planning to minimize the financial burden.