Taxes

VAT is effectively calculated by deducting input taxes from domestic, acquisition, and import tax. Quarterly filing with the ESTV is required.

Latent taxes compensate for temporary differences between commercial balance sheets and tax balance sheets and can act as future tax reliefs or obligations. They arise when tax and commercial profits temporarily vary.

Sole proprietorships and partnerships must pay tax on their entire income and assets as natural persons. They use tax optimization, e.g. through depreciation and provisions, to minimize their tax burden.

SuisseTax facilitates VAT accounting for companies through electronic filing and administration features. New users can register online and require authorization.

Medical and accident costs can be deducted from taxes, minus a deductible and amounts not covered. Receipts and a summary of costs are required for claiming the deduction.

The employment of foreign workers requires, depending on their origin, a registration or approval obligation. Work assignments must be reported at least 8 days before the activity begins.

In Switzerland, withholding tax is directly collected by the employer when the employee is foreign and without permanent residence in the country. Various types of employees, such as artists or business managers from abroad, are affected by this.

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.