Taxes

When purchasing new real estate, the capital gains tax can be deferred if the proceeds from the sale of an owner-occupied property are reinvested. Conditions such as personal use and a cantonal deadline of usually two years must be met.

Taxpayers with domiciles in different regions use apportionment methods to avoid double taxation. These include inter-municipal, inter-cantonal, and international tax allocations.

Profits can be distributed as wages/dividends or retained for tax-free capital gains. Both strategies affect tax burden and corporate liquidity.

In real estate transactions in Switzerland, a cantonally regulated transfer tax is due, which covers the administrative expenses. The tax institution varies depending on the canton; some waive it or allow certain allowances.

A mixed company in Switzerland primarily conducts foreign business and has a special status in tax law, which allows tax privileges in cantons. Nationwide, the regular profit tax of 8.5% applies to it, while foreign income is often tax-exempt.

Zurich strengthens startups through new tax regulations that assess young companies at their substance value during the start-up phase. The regulation, which takes effect immediately, also extends the start-up phase for medtech and biotech sectors to five years.

The Swiss approved the FABI initiative, which since 2016 allows a maximum of CHF 3,000 per year to be tax deductible for commuting. Employees can claim this compensation in their tax return regardless of the mode of transport.

The "marriage penalty" criticizes the tax disadvantage for married couples; an initiative demands its abolition. The referendum on this will take place on February 28, 2016.

Input tax applies to domestic recipients of services or materials from foreign companies. The tax liability applies from an annual receipt of over 10,000 Fr. or in the case of taxable activity.