Taxes

The provisional tax bill is a preliminary estimate of the tax liability and is intended to contribute to financial planning. Its issuance and deadlines vary by canton, generally it is due in the first quarter and to be paid by autumn.

The deadline for filing the tax return varies depending on the canton; usually, it is on 03/31 or 04/30 for natural persons. Extensions are usually possible online until November/December.

The expense regulations create clear guidelines for handling expense expenditures and reduce accounting effort. It must be approved by the cantonal tax office to exclude hidden wage payments.

The withholding tax is deducted directly from the wages of foreign workers without a residence permit and varies depending on the canton. Employers are responsible for the correct payment of this tax to the competent tax office.

The value-added tax rates in Switzerland will increase from 01.01.2024, making everyday products and services slightly more expensive. Companies must adjust their accounting systems and pay attention to the timing of service provision.

Employers often offer taxable employee discounts on their products/services. Taxation is based on the laws and amounts to discounts over CHF 2,300.

Solar panels offer not only ecological advantages but also significant tax relief by being deductible as maintenance in many cantons. The investment can also lead to a reduction in tax progression, which is financially attractive especially for households with high income.

In Switzerland, persons subject to withholding tax are usually exempt from filing a tax return, unless they are subsequently subject to ordinary assessment, which becomes necessary when certain income thresholds are exceeded. This assessment allows for tax deductions and must be applied for by March 31.

Cryptocurrencies must be declared as assets in the tax return; gains are tax-free for private individuals, losses are not deductible. Special tax rules apply for business use, including the regulation for mining.