Taxes

The patent box in Switzerland promotes research and development through tax advantages; since 2020, companies can significantly reduce taxes on profits from patents. Differences in tax reductions of up to 90% vary depending on the canton.

The ESTV aims for all tax data to be submitted electronically in the future, despite data protection concerns from various parties. The Federal Council supports this digitalization and facilitates easing of the signature requirement at the cantonal level.

Zurich extended the deadline for tax returns until 09/30/2020 due to COVID-19. Penalties threaten in case of missing the deadline, but a quick follow-up submission can help.

Taxable persons must submit necessary documents for the examination of taxes and input tax deductions to the FTA; if this is not done, the FTA can carry out a discretionary assessment. In cases of missing or incorrect documentation, the Federal Court supported a discretionary estimate as legally compliant.

BEPS describes the exploitation of international tax laws by corporations to shift profits and minimize their tax burden. The OECD combats such tax avoidance strategies with guidelines and transparency measures.

The basic principles of tax sovereignty in Switzerland protect citizens through fair tax collection and laws. Violations of these principles can be legally challenged.

From March to December 2020, the federal government waived default interest on certain taxes. Cantons have extended deadlines for tax returns.

Accounting separation suffices for catering establishments to claim the reduced VAT rate for meal deliveries. However, services such as take-away are subject to the standard tax rate if there are facilities for on-site consumption.

Ferrero Schweiz AG had to make substantial back tax payments because it mistakenly applied the reduced VAT rate when importing Kinder Surprise eggs. According to the Federal Court, the product consists of three parts, which is why the normal tax rate of 7.7% applies.